SUNNY ISLES BEACH, Fla. — Icahn Enterprises L.P., the parent company of Icahn Automotive/Pep Boys, suffered a $1.38 billion loss in the quarter ended March 31 on 19% lower revenue of $1.84 billion.
The net loss attributable to Icahn in 2020 is more than three times that of the loss reported a year ago, $394 million, the company stated in a report filed with the Securities and Exchange Commission.
Icahn Enterprises did not provide commentary for the figures in the SEC filing, but the figures show the company reported a $2.13 billion loss from "investment activities."
One of Icahn Enterprises' seven reporting segments is Investments, which "derives revenue from gains and losses from investment transactions," according to other company filings. Icahn Enterprises was founded in 1987 as American Real Estate Partners L.P.
The Investment segment is comprised of "various private investment funds" in which Icahn has general partner interests and through which it invests the firm's proprietary capital. As general partner, Icahn Enterprises provides "investment advisory and certain administrative and back office services" to the Investment Funds.
Icahn Automotive Group L.L.C. reported a net loss of $113 million on 8.8% lower sales of $636 million. The 2020 net loss was 73.8% deeper than the $42 million loss reported a year ago.
Icahn attributed the sales drop to decreases in aftermarket parts sales of $41 million and in automotive services revenues of $17 million. Store closures related to the company’s retail transformation plan accounted for $15 million of the aftermarket parts sales decline.
The fall in auto services revenues was primarily organic. Icahn attributed the revenue drops to the COVID-19 pandemic and the impacts of the actions taken by governments and others. The company said the business was experiencing growth on an organic basis until pandemic-related business restrictions took effect in March.
Icahn also noted that the pandemic-related business slowdown prompted it to accelerate planned store closures, which had an impact on revenues.
In an investor profile published earlier this year, the company noted the Investment Funds' cumulative return for the period 2004 through Dec. 31, 2019, was approximately 101.5%, representing an annualized rate of return of approximately 4.7%.
That report stated the business has had a "long history of investing in public equity and debt securities and pursuing activist agenda."
Despite the losses, the firm's board of directors declared a quarterly distribution $2.00 per depositary unit, which will be paid on or about June 25 to depositary unitholders of record at the close of business on May 19.