Auto Parts distributor LKQ trims annual forecasts on falling metal prices
Oct 26 (Reuters) - Auto Parts distributor LKQ Corp lowered its full-year profit forecast on Thursday, as commodity costs weigh.
LKQ, which also sells scrap and other materials to metal recyclers, had earlier said it expects commodity prices to be a headwind for the remainder of 2023.
"We are reducing our full-year guidance on revenue and earnings per share due to our underperformance in third quarter and expected fourth-quarter effects from additional strike activity in Germany, the anticipated dilution from the Uni-Select acquisition, soft commodity prices and a continuation of difficult market conditions for our specialty and self service segments," said CFO Rick Galloway.
The company's self service retail facilities sell recycled automotive products from end-of-life vehicles, while specialty segment distributes vehicle aftermarket equipment and accessories.
The Chicago, Illinois-based company sees 2023 adjusted profit per share to be between $3.68 and $3.82, compared with $3.90 to $4.10 projected earlier.
The supplier also cut its organic revenue growth forecast for parts and services to 4.75% to 5.75%, from its prior expectation of 6% to 7.5%.
LKQ's adjusted profit of $0.86 per share for the quarter ended Sept. 30 missed average analysts' estimate of $0.96 per share, according to LSEG data.
Its revenue for the third quarter rose to $3.57 billion, boosted by growth in its wholesale - North America and Europe segments. Analysts had estimated $3.49 billion. (Reporting by Raechel Thankam Job; Editing by Shilpi Majumdar)
