LKQ Corporation, former owner of Pittsburgh Glass Works (PGW), had a strong second quarter, bringing in $2.46 billion in revenue—an increase of 6.7 percent compared to 2016’s $2.30 billion second quarter earnings. This is according to the company’s latest financial report.
“We had solid operating results during the quarter,” said Dominick Zarcone, president and CEO of LKQ. “We were particularly pleased to see our North American segment report an improvement in organic revenue growth for parts and services to 2.8 percent, despite the ongoing headwinds of the mild weather witnessed in the first quarter of 2017.”
Zarcone noted the company’s parts and services segment in the European market also delivered strong revenue growth. Collectively, on a six month year-to-date basis, the segment saw an uptick of 4.1 percent in the first six months of 2017.
For the six-month period, revenue was $4.80 billion, up 13.6 percent from $4.23 billion for the same period of 2016.
For the half-year period, cash flow from operations amounted to $362 million, of which $88 million was invested in capital expenditures and other long-term assets. Additionally, $101 million went toward acquisitions.
According to the report, LKQ acquired seven companies during the second quarter of 2017, including two distributors of automotive aftermarket parts in Ireland and Northern Ireland.
As of June 30, the balance sheet had cash equivalents of $304 million and outstanding debt of $3.0 billion. The company’s credit facility availability was $1.1 billion.
In December 2016, LKQ announced it had plans to sell its PGW automotive Original Equipment Manufacturer (OEM) glass business to Vitro, S.A.B, for the purchase price of about $310 million USD. The deal closed in the first quarter of 2017. However, LKQ agreed to enter into a multi-year purchase agreement whereby Vitro will supply LKQ’s aftermarket glass distribution business with an already agreed-upon volume.