LKQ Corp., the parent company of NTP-Stag, said its Specialty segment’s organic revenue decreased 12.9% in the second quarter of 2023 from the second quarter of 2022, below the company’s expectations.
Company President and CEO Nick Zarcone said RV and towing-related products were “off substantially more” than the rest of the Specialty segment. According to Zarcone, the prolonged slump may continue.
“We are not predicting that we are at the bottom yet,” he said. “The reality, it has been a rough couple of quarters for our specialty business. We have not seen a catalyst that is going to turn it quickly.”
Zarcone said the company expects further RV industry declines, which will continue the Specialty segment’s challenges the second half of 2023.
“The good news is they did some restructuring earlier in the year,” Zarcone said. “They are going aggressively at their cost structure. In the month of June, they were actually back to double-digit margins even though they were not there for the quarter. So, I would suggest that margins in and around the 10% range. It is something that we are striving to achieve, even though the revenues may be challenged now for several more quarters.”
