SUNNY ISLES BEACH, Fla. — Icahn Automotive Group L.L.C. reported an operating profit of $6 million in the quarter ended Sept. 30 on 11.3% lower sales of $666 million.
The business' earnings for the quarter compare with an operating loss of $23 million in the year-ago quarter, according to data reported by Icahn Enterprises L.P., Icahn Automotive's holding company. The net result was a $26 million loss.
Icahn Automotive's results are predominantly those of its Pep Boys retail tire and automotive service business, but also include royalty income from its AAMCO Transmissions and Precision Tune Auto Care franchise businesses.
Icahn did not provide much commentary on the automotive sector's results, other than to say they include "significant" parts-related closure activities, and inventory reduction of $147 million since year-end 2019 and adjusted operating hours and staffing to match "significantly reduced demand."
For the January-September period, Icahn Automotive was $42 million in the red on an operating basis, up slightly from a $49 million loss in 2019. Sales revenue fell 13.7% to $1.88 million. The net loss grew to $149 million from $128 million.
As a full corporation, Icahn Enterprises L.P. fell deeper into the red in the quarter ended Sept. 30 on 29% lower sales.
For the quarter, the diversified holding company's pre-tax operating loss quadrupled to $550 million from $121 million a year ago, while sales fell to $1.76 billion. The net loss ballooned to $1.4 billion as Icahn reported a net loss from investing activities of $1.26 billion.
For the nine-month period, the pre-tax operating loss grew to $1.2 billion from $573 million a year ago, Icahn reported, as sales revenue dropped by nearly a third to $4.95 billion. The net loss grew by 74% to $2.84 billion.
Icahn Enterprises recently relocated its headquarters to Sunny Isles — a northern suburb of Miami — from New York.