SUNNY ISLES BEACH, Fla. — Icahn Automotive, parent of Pep Boys and franchisor of AAMCO Transmissions and Precision Tune Auto Care businesses, cut its operating and net losses for quarter ended March 31 despite 5.8% lower sales.
The business, part of Icahn Enterprises L.P., cut its operating loss 78.6% to $9 million and the net loss 37% to $46 million on sales of $598 million.
The company did not comment on the reasons for the improvements in its operating and net results.
The company recently struck a deal to lease the retail space of 109 Pep Boys stores in California to Advance Auto Parts Inc., which plans to convert them to Advance Auto Parts stores over the next nine to 12 months.
That deal coincides with the completion of a 20-month-long restructuring of the Icahn Automotive business, which sought to separate the automotive aftermarket 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.
Overall, Icahn Enterprises reported pre-tax operating income (EBITDA) of $435 million on revenue of $3.4 billion. A year ago, the company reported an operating loss of $1.3 billion.
Net income was $162 million versus a net loss of $1.4 billion a year ago.
