Feb 20 (Reuters) - Auto parts distributor LKQ Corp ( LKQ )

on Thursday forecast lower-than-expected annual profit,

after missing fourth-quarter revenue estimates due to sluggish

demand for vehicle parts.

Consumers have been hesitant about opting in for

insurance for vehicular damages due to rising premiums and the

high cost of repairs, hurting demand for spare parts.

LKQ has been ramping up its cost-cutting measures by selling

underperforming assets, including its operations in Poland and

Bosnia, and implementing job cuts.

The company forecast 2025 adjusted earnings in the range of

$3.40 to $3.70 per share, below analysts' average estimate of

$3.60, according to data compiled by LSEG.

It expects its annual organic revenue growth for parts and

services to be between 0% and 2%.

LKQ, which also sells scrap and other materials to metal

recyclers, posted sales of $3.36 billion for the quarter ended

December 31, missing estimates of $3.40 billion.

The company reported fourth-quarter adjusted earnings of 80

cents per share, compared with estimates of 74 cents.