NEW YORK — Icahn Enterprises L.P. fell $1.1 billion in the red in fiscal 2019 on 8.1% lower sales of $9.72 billion, a performance the company blamed in large part on losses at its Icahn Automotive Group L.L.C. and investment business units.
The net loss contrasts with net income of $1.48 billion in fiscal 2018.
At Icahn Automotive — parent of Pep Boys and Auto Plus — the pre-tax operating loss (EBITDA) grew 66.7% to $80 million on 0.9% higher sales of $2.88 billion. The unit's net loss improved by 14.3% to $197 million, the company said.
In the fourth quarter, the automotive unit's operating loss was trimmed by 44.6% to $31 million on 0.4% higher sales of $703 million.
During a Feb. 28 conference call with investment companies, Icahn executives reiterated the company's strategy to implement a "multi-year" plan to separate the aftermarket parts and auto service businesses into separate operating companies, noting that management sees Icahn's ability to compete nationally more realistic in the service sector than in the parts distribution area.
The Service company includes the automotive repair and maintenance businesses of Icahn's captive Pep Boys chain and its AAMCO and Precision Tune Auto Care franchise businesses, as well as several regional service centers.
Brian Kaner, who joined Icahn in November 2017 after 2½ years as head of Sears Automotive, was named CEO of the Service unit last June.