CHICAGO -- LKQ Corp. has reported diluted earnings per share from continuing operations of 36 cents for the first quarter ended March 31, an increase of 63.6 percent from 22 cents for the first quarter of 2009. Revenue for the first quarter was $603.5 million, an increase of 18.1 percent as compared to $510.9 million for the same period of 2009. Income from continuing operations for the first quarter of 2010 was $52 million, an increase of 62.4 percent as compared to $32 million for the same period of 2009.

"The year started off strong and we had a very good first quarter," said Joseph Holsten, president and CEO of LKQ Corp. "The results reflect the strength of our parts sales businesses and improved economies of scale. Higher parts and services revenue combined with improved commodity prices led to overall organic revenue growth of 10.7 percent. Our parts and services revenue grew organically by 5.6 percent as a result of continued increases in the sale of alternative parts, especially our aftermarket products."

During the first quarter of 2010, LKQ entered the tire recycling industry with its acquisition of a tire recycling business in Sterling, Conn. The acquired business had historical revenue of approximately $3 million in 2009. Also in the first quarter, LKQ opened start-up, self-service retail locations in Savannah, Ga., and Durham, N.C., and a heavy-duty truck facility in Monterrey, Mexico.

In January 2010, LKQ completed previously announced divestiture transactions with the sale of two self service retail facilities in Dallas, Texas, to Schnitzer Steel Industries Inc. The results of the facilities sold have been classified as discontinued operations for all periods presented.

As of March 31, 2010, LKQ's balance sheet reflected cash and equivalents of $193.5 million and long-term debt, including the current portion, of $596.6 million. LKQ had no borrowings on its revolving credit facility of $100 million, although availability was reduced by $23.9 million of outstanding letters of credit.

LKQ is also raising its earnings guidance for 2010. Income from continuing operations and diluted earnings per share from continuing operations are anticipated to be within the range of $154 million to $163 million and $1.06 to $1.12, respectively. The company said the revised guidance reflects the higher commodity price environment and improved margins in the wholesale business. LKQ's previous guidance was $145 million to $155 million for income from continuing operations, and $1.00 to $1.06 for diluted earnings per share.

Net cash provided by operating activities for 2010 is now projected to be in excess of $160 million. LKQ reiterated its 2010 range for capital expenditures related to property and equipment of $85 million to $95 million.