SUNNY ISLES BEACH, Fla. — Icahn Enterprises L.P.'s automotive sector, which includes tire and automotive services retailer Pep Boys, suffered pre-tax operating losses of $20 million and $107 million, for the quarter and six months ended June 30, respectively.
The sector generated 2.2% and 3.7% lower sales in the quarter and six months, respectively, of $621 million and $1.19 billion.
Icahn attributed the second-quarter revenue decline to lower aftermarket parts sales of $75 million, a decline offset in part by an increase in automotive services revenue of $46 million. The decrease in aftermarket part sales included a decrease in commercial sales of $25 million compared to the prior period.
For the six-month period, aftermarket parts sales dropped by $150 million, offset in part by an increase in automotive services revenue of $77 million (12%). The decrease in aftermarket parts is mainly related to a decrease in commercial sales of $24 million
Contributing to the negative earnings report were $205 million in "transformation losses" and inventory write-downs throughout the year, including $90 million in the fourth quarter, Icahn said.
The automotive sector — Icahn Automotive Group L.L.C. — comprises Pep Boys (1,000-plus auto service locations), Auto Plus (750-plus auto parts distribution centers) and the AAMCO Total Car Care and Precision Tune Auto Care automotive service franchise businesses.
The company does not provide a breakdown of revenue by operating business unit.
