LKQ Corp., a maker of vehicle replacement parts, said Thursday profit dropped 40 percent in the fourth quarter, due mostly to extreme volatility in commodity prices.
Net income for the three months ending Dec. 31 was $13 million, or 9 cents per share. That compared to $21.5 million, or 16 cents a share, in the year-ago period.
Revenue totaled $470.3 million, up 13 percent from $414.7 million.
Excluding restructuring costs totaling $1.9 million in the fourth quarter and $8.6 million for the year, LKQ said earnings would have been 10 cents per share and 75 cents a share, respectively.
Analysts polled by Thomson Reuters expected earnings of 14 cents a share on $489.8 million in revenue in the fourth quarter and 77 cents per share on revenue of $1.96 billion for the year.
LKQ said falling commodity prices resulted in $11.8 million in operating losses for its self-service recycle operations.
Profit for the full year was $99.9 million, or 71 cents per share, compared with $65.9 million, or 55 cents per share, in 2007. Revenue for 2008 was $1.94 billion, compared with $1.1 billion for the prior year.
LKQ acquired a number of business in 2008, including three heavy-duty truck recycled parts businesses, a self-service auto recycler in California, and two wholesale automobile recyclers in Ontario, Canada. Collectively, LKQ said the businesses had about $152 million of annual revenue.
Going forward, LKQ said it expects profit of 21 cents to 22 cents per share in the first quarter of 2009, which is in line with analyst expectations.
Share of LKQ rose 43 cents, or 3.8 percent, to $11.87 in midday trading.
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