SUNNY ISLES BEACH, Fla. — Icahn Automotive L.P., a business unit Icahn Enterprises L.P. that comprises Pep Boys, Auto Plus and the AAMCO, Cottman and Precision Tune franchise businesses, cut its fiscal pre-tax operating loss in half on stagnant sales.
The unit's adjusted EBITDA was reduced by nearly 54% to $31 million, Icahn Enterprises L.P. reported, while fiscal 2022 sales fell 1% to $2.39 billion. Icahn attributed the revenue drop to a decrease in aftermarket parts sales of $175 million offset in part by an increase in automotive services revenue of $210 million.
The decrease in aftermarket part sales was driven by lower volumes, offset in part by price increases. The increases in automotive services revenues was driven by price increases, offset in part by lower volumes.
The net loss was reduced by 35.4% to $192 million.
Revenue in the fourth quarter increased 3.9% to $585 million, based on a $43 million rise in automotive service sales and a $25 million drop in aftermarket parts sales. The adjusted EBITDA loss was reduced by 56% to $43 million.
The company did not comment on the reasons for the improved earnings but did note that capital expenditures more than doubled to $114 million.
Icahn Enterprises recently disclosed that its IEH Auto Parts Holding L.L.C. unit — collectively Auto Plus — had filed for Chapter 11 bankruptcy protection, in light of various factors that have impacted business negatively.
The filing is limited to Auto Plus and will not have a "significant" impact on Icahn Enterprises, the financial holding company stressed. Kennesaw, Ga.-based Auto Plus does business through 750-plus outlets throughout the U.S.
In addition, Icahn Enterprises recently hired longtime Menard Inc. executive Scott Collette as its CEO, filling a position left open since November 2022 when former President and CEO Brian Kaner left the company.
Overall, Icahn Enterprises L.P. suffered operating and net losses in fiscal 2022 despite 24.4% increased sales.