CHICAGO — LKQ Corp. has announced results for its second quarter ended June 30, with revenue of $484.4 million, net income of $31 million and diluted earnings per share of 22 cents.

"Our second quarter results demonstrate the strength of our diversified business model. Both our revenue and our net income more than doubled compared to the second quarter of 2007, and we achieved 13.2 percent overall organic revenue growth in the quarter. Our operating margin improved this quarter over the second quarter of 2007 by close to 65 basis points, and would have been an additional 65 basis points higher without restructuring expenses. Our diluted earnings per share for the quarter puts us on track to exceed the earnings guidance that we previously issued by approximately 9 cents per share," said Joe Holsten, president and chief executive officer.

Commenting on the strong recycled products revenue growth, Holsten said, "We believe higher fuel prices this quarter contributed to lower reported insurance claim activity, which in turn adversely affected our growth on aftermarket, other new and refurbished parts revenue, which still grew by about 1 percent despite difficult market conditions. Organic revenue growth exceeded that of our first quarter as our recycled parts and other related revenue growth expanded significantly due to our processing of increased volumes of vehicles, along with higher demand for the commodities that we separate in our recycling processes."

For the second quarter of 2008, revenue increased 107.6 percent to $484.4 million compared with $233.3 million for the second quarter of 2007. LKQ’s organic revenue growth for the quarter was 13.2 percent, and was calculated on a pro forma basis assuming ownership of Keystone Automotive Industries, Inc. during the second quarter of 2007. Net income for the quarter increased 121.1 percent to $31 million compared with $14 million for the second quarter of 2007. Diluted earnings per share was 22 cents for the quarter compared with 12 cents for the second quarter of 2007.

For the six months ended June 30, revenue increased 108.3 percent to $976.3 million compared with $468.6 million for the same period in 2007. This included pro forma organic revenue growth of 11.2 percent. For the six months, net income increased 107.5 percent to $61.9 million compared with $29.8 million for the same period in 2007. Diluted earnings per share was 44 cents for the six months ended compared with 27 cents for the same period a year ago.

For the second quarter of 2008, LKQ recorded $3.1 million and for the six months ended June 30, the company recorded $4.3 million of restructuring expenses, which were included in operating expenses and were all related to our Keystone acquisition in October 2007.

The company said it expects that 2008 organic revenue growth will again be in the low double digits, with the balance of revenue growth being the full year impact of 2007 business acquisitions and the business acquisitions we have completed to date in 2008. Excluding the effect of any 2008 restructuring expenses related to the Keystone acquisition, LKQ expects full year 2008 net income to be within a range of $120 million to $124 million and diluted earnings per share to be between 85 and 88 cents.

The company anticipates that net cash provided by operating activities for 2008 will be more than $100 million and that full year 2008 capital expenditures related to property and equipment, excluding expenditures for acquiring businesses, will be between $68 million to $78 million. This includes approximately $10 million related to capital expenditures planned for late 2007 on projects that were delayed and approximately $4.8 million related to restructuring our aftermarket business as a result of the Keystone acquisition.

For more information about LKQ, go to: www.lkqcorp.com.