LKQ Withdraws Guidance, Replaces CEO After Weak Preliminary Q3 Results
LKQ said preliminary third-quarter results fell significantly below analyst expectations, citing ERP implementation disruptions in Germany and European profit margins at roughly half last year’s levels. The company announced the immediate departure of its CEO and head of Europe, hired a turnaround firm to stabilize European operations, and withdrew full-year guidance. Block & Leviton announced an investigation into potential securities law violations.
LKQ Corporation reported preliminary third-quarter results that fell significantly below analyst expectations, citing operational disruptions from an ERP implementation in Germany and Europe profit margins at roughly half of the prior year's levels. In response to these challenges, the company announced the immediate departure of its CEO and its head of Europe, hired a turnaround firm to stabilize its European operations, and withdrew its full-year financial guidance.
Following these disclosures, the law firm Block & Leviton announced an investigation into potential securities law violations, specifically examining whether the company and its executives misled investors regarding the state of its European operations and the ERP rollout.