SUNNY ISLES BEACH, Fla. — Icahn Automotive Group L.L.C. reported an adjusted pre-tax operating profit of $1 million for the quarter ended Sept. 30, a 93% drop from year ago.
The company — which goes to market under the Pep Boys brand and also franchises the AAMCO and Precision Tune businesses — said sales revenue increased 8.6% to $627 million as higher automotive service revenue of $55 million offset a drop of $34 million in aftermarket parts sales.
Icahn Automotive cited higher material and labor costs for the drop in earnings in the automotive service sector. Increases in price and volume over the comparable prior year period accounted for much of the higher revenue. The unit's revenue in the quarter was split 67/23 revenue/parts, up from 60/40 a year ago.
Brian Kaner, president and CEO of Pep Boys – Service, since June 2019, left the company at the end of October to become executive vice president and chief operating officer for Boyd Group Inc.'s collision business.
The company has not commented publicly on his departure or possible replacement.
For the nine months ended Sept. 30, Icahn Automotive's adjusted EBITDA was $12 million, down 63% from a year ago. Sales revenue fell 1.2% to $1.81 billion.
Icahn attributed the sales decrease to lower aftermarket parts sales of $184 million, offset in part by an increase in automotive services revenue of $132 million. The decrease in aftermarket parts is related to the impact of store closures throughout 2021, Icahn said.
The increase in automotive service revenue was driven by increases in price and volume over the comparable prior-year period.