SUNNY ISLES BEACH, Fla. — Icahn Automotive reduced its operating loss nearly 44% in fiscal 2020 to $45 million despite a 14.1% drop in sales, according to fiscal 2020 figures released by Icahn Enterprises L.P.
Sales for Icahn Automotive — primarily the results of the Pep Boys auto service chain — fell to $2.48 billion. The net result was a loss of $198 million, essentially unchanged versus fiscal 2019.
In the fourth quarter, Icahn Automotive cut its operating loss 90% to $3 million on 18% lower sales of $596 million.
Icahn attributed its earnings "improvement" to a number of initiatives, including an accelerated program to close underperforming parts stores and reduced spending in several areas.
The Icahn Automotive business also includes royalty income from its AAMCO Transmissions and Precision Tune Auto Care franchise businesses.
In a conference call with the financial community, Icahn said it essentially completed the separation of its automotive assets into independent aftermarket "Parts" and "Service" companies.
The Service company includes the automotive repair and maintenance businesses of Icahn's Pep Boys chain and its AAMCO and Precision Tune Auto Care franchise businesses, as well as several regional service centers the company has acquired.
The Parts company comprises the retail and commercial lines of business of both the Auto Plus and Pep Boys businesses.
The company did not elaborate on how the two entities compare in size but said the initiative is designed to position the service business to take advantage of opportunities in the do‐it‐for‐me and vehicle fleet market segments.
At year-end 2020, the company operated 962 Pep Boys outlets throughout the U.S. and Puerto Rico.
As a whole, Icahn Enterprises reported a pre-tax operating loss of $738 million and a net loss of $1.7 billion on 29.9% lower sales revenue of $6.82 billion.