SUNNY ISLES BEACH, Fla. — Icahn Automotive Group L.L.C. posted larger operating and net losses in the quarter and half-year periods ended June 30 on double-digit drops in sales, parent Icahn Enterprises L.P. reported today.
Icahn Automotive — which operates the Pep Boys – Manny, Moe & Jack retail automotive service chain and oversees the AAMCO, Precision Tune and Cottman Transmission franchise businesses — posted adjusted pre-tax operating (EBITDA) losses of $7 million and $49 million for the quarter and half-year, respectively, compared with losses of $3 million and $26 million a year ago.
The business had net losses of $50 million and $123 million for the quarter and half-year, compared with $38 million and $80 million, respectively, in 2019.
Sales fell 21% in the quarter to $587 million and 15% in the half-year to $1.22 billion.
Icahn attributed the earnings situation to a number of factors, including: an accelerated program of closing underperforming parts stores; inventory reduction of $116 million since year-end; and adjusted operating hours and staffing to match "significantly reduced" demand.
Icahn Enterprises said it's counting on these and other restructuring measures to position the automotive sector for profits as the economy recovers post-pandemic.
The company did not provide specifics as to the number of parts stores closed or as to the number of stores in operation.
As a corporation, Icahn Enterprises posted pre-tax operating income of $695 million for the quarter on 23.4% higher sales of $2.71 billion.
The operating income (EBITDA) contrasts with an operating loss of $349 in the year-ago period. Net income was $299 million, compared with a net loss of $498 a year ago.