July 7, 2022

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Half the Automotive

Icahn Automotive trims losses despite lower sales


SUNNY ISLES BEACH, Fla. — Icahn Automotive Group L.L.C. trimmed its pre-tax operating loss for the quarter ended March 31 to $2 million from $9 million despite a 7.4% drop in revenue.

Icahn Automotive, a unit Icahn Enterprises L.P., comprises the Pep Boys auto repair and retail tire and AutoPlus auto parts distribution businesses and is the franchisor of the AAMCO and Precision Tune auto maintenance businesses.

Icahn Enterprises did not comment on the reasons for the improved earnings performance.

On the revenue side, sales dipped to $554 million as 8% higher revenue from its automotive services activities were offset by a $70 million drop in sales by its auto parts business, which the firm tied to store closures in line with its ongoing transformation plan.

The increase in automotive services revenue, to $353 million, represents an increase on a primarily organic basis as prices increased 2% over the comparable prior year, Icahn said.

In the auto services sector, management is working to secure external tenants for underutilized locations, along the lines of the company’s deal in 2020 to lease retail space in 109 Pep Boys stores in California to Advance Auto Parts Inc.

The net loss was cut by 39% to $28 million.



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