LKQ Corporation announced the departure of its president and chief executive officer, Justin Jude, following continued weak performance in its European operations and disappointing quarterly results. The automotive parts and services company, headquartered in Antioch, Tennessee, also initiated a review of its European business, signaling a strategic effort to stabilize and improve performance across the region.

The company reported that adjusted earnings for the third quarter are expected to range between 47 cents and 53 cents per share, a significant shortfall compared with the 69 cents per share forecast by analysts surveyed by FactSet. This earnings miss was driven largely by a 9.8% decline in organic parts and services revenue in Europe. In response, LKQ’s shares dropped sharply by 22% on Friday, closing at $17.50, their lowest level in six years.

LKQ’s board stated that the company has engaged Alvarez & Marsal, a professional services and advisory firm, to assist in reviewing and enhancing its European operations. The focus will be on improving customer service, stabilizing day-to-day operations, and implementing stronger cost controls across the continent.

The company has also withdrawn its full-year guidance, which was initially revised downward in late July after LKQ posted second-quarter results that missed expectations. Alongside Jude’s exit, Andy Hamilton, president and managing director of LKQ Europe, has also left the company.

Salvatore Abbate, the former CEO of packaging firm Vertiv, is scheduled to take over as LKQ’s president and CEO on December 15. In the interim, Chairman John Mendel and board member Sue Gove will lead an office of the CEO. Mendel commented on the leadership changes, stating that LKQ’s performance, particularly in Europe, “has fallen significantly short of the board’s expectations,” necessitating decisive action.

In its financial update, LKQ disclosed that noncash impairment charges are expected to lead to a third-quarter loss per share ranging from 6 cents to 12 cents. The full quarterly results are due to be released on October 29.

Regarding compensation, LKQ said Abbate will receive an annual base salary of $1.34 million, a $3.3 million signing bonus, and a performance bonus target set at 150% of the base salary. Jude, who joined the company in 2004, as well as Hamilton, will be eligible for payments and benefits related to terminations without cause.