SUNNY ISLES BEACH, Fla. — Icahn Enterprises L.P.'s automotive sector, which includes tire and automotive services retailer Pep Boys, suffered a $67 million pre-tax operating loss in fiscal 2021 on 3.8% lower revenue of $2.38 billion.
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.
In addition, the company said it revised how it estimates the fair value of the automotive segment's owned real estate to reflect the improvement of its real estate leasing operations and its Services business to reflect current market multiples, which reflects more accurately the fair value of the assets, both of which contributed to the positive change in indicative net asset value.
Icahn did not comment specifically on the Pep Boys business other than to note that automotive services revenues increased by 12% in the fourth quarter over the comparable fiscal 2020 quarter.
The company also noted that management is working to secure external tenants for underutilized owned and ground‐leased assets. In early 2021 Icahn agreed to lease retail space within 109 Pep Boys stores in California to Advance Auto Parts Inc., which converted the space to branded auto parts retail.
The company did not issue any forecasts or guidance for fiscal 2022.
Overall, Icahn Enterprises returned to the black on an operating basis for the year ended Dec. 31 on 85% higher revenues.
