Investor Contact:
Dominick Ragone
Chief Financial Officer
(646) 861-7500
For Release: August 11, 2008
Icahn Enterprises L.P. Reports Second Quarter Financial Results
New York, NY - Icahn Enterprises L.P. (NYSE: IEP) today reported a net loss of $98.8 million, or $1.37 loss per LP unit, for the three months ended June 30, 2008, compared to net earnings of $64.2 million, or $0.40 loss per LP unit, for the comparable period of fiscal 2007. Icahn Enterprises declared a quarterly distribution of $0.25 per unit on its depositary units, payable in the third quarter of fiscal 2008. The distribution will be paid on September 5, 2008 to depositary unitholders of record at the close of business on August 22, 2008.
Second Quarter 2008
For the three months ended June 30, 2008, revenues were $(149.7) million as compared to $783.1 million in the three months ended June 30, 2007. Loss from continuing operations was $96.9 million for the three months ended June 30, 2008, compared to income of $43.6 million for the comparable period of 2007. Loss from discontinued operations was $1.9 million for the three months ended June 30, 2008, compared to a gain of $20.6 million for the comparable period in fiscal 2007.
Key Subsequent Events
On July 3, 2008, Icahn Enterprises Holdings L.P. (“Icahn Enterprises Holdings”) and its newly formed, wholly owned subsidiary, IEH FM Holdings LLC ("Acquisition Sub"), entered into a Stock Purchase Agreement (the "Agreement") with Thornwood Associates Limited Partnership ("Thornwood") and Thornwood’s general partner, Barberry Corp. ("Barberry"), pursuant to which Icahn Enterprises acquired a majority interest in Federal-Mogul Corporation (“Federal-Mogul”). Thornwood and Barberry are wholly owned by Mr. Carl C. Icahn. Prior to the acquisition of the shares by Icahn Enterprises Holdings, Thornwood owned 75,241,924 shares of Federal-Mogul’s Class A common stock (“Federal-Mogul Stock”), which represented approximately 74.87% of the total issued and outstanding shares of capital stock of Federal-Mogul.
Pursuant to the Agreement, Acquisition Sub purchased from Thornwood 50,750,000 shares of Federal-Mogul Stock for an aggregate purchase price of $862,750,000 in cash. The purchased shares represent approximately 50.5% of the total issued and outstanding shares of capital stock of Federal-Mogul.
Conference Call Information
Icahn Enterprises L.P. will discuss its second quarter results on a conference call and Webcast on Tuesday, August 12, 2008 at 10:00 a.m. EST. The Webcast can be viewed live on Icahn Enterprises L.P.’s website at www.icahnenterprises.com. It will also be archived and made available at www.icahnenterprises.com under the Investor Relations section. The toll-free dial-in number for the conference call in the United States is (800) 938-1410. The international number is (702) 696-4768. The access code for both is 59085779.
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Icahn Enterprises L.P. (NYSE: IEP), a master limited partnership, is a diversified holding company engaged in five primary business segments: Investment Management, Automotive, Metals, Real Estate, and Home Fashion. For more information, please visit the company’s website at www.icahnenterprises.com.
Caution Concerning Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises L.P. and its subsidiaries. Among these risks and uncertainties are risks related to substantial competition, rising operating costs and economic downturns; risks related to our investment management activities, including the nature of the investments made by the private funds we manage, changes in domestic and international laws governing private funds and loss of key employees; risks related to our automotive activities, including exposure to adverse conditions in the automotive industry, exposure to credit risk of customers, significant indebtedness and risks related to operations in foreign countries; risks related to our scrap metals activities, including potential environmental exposure; real estate activities, including the extent of any tenant bankruptcies and insolvencies, our ability to maintain tenant occupancy at current levels, our ability to obtain, at reasonable costs, adequate insurance coverage and competition for investment properties; risks related to our home fashion operations, including changes in the availability and price of raw materials, changes in customer preferences and changes in transportation costs and delivery times; and other risks and uncertainties detailed from time to time in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.
APPENDIX I
CONSOLIDATED STATEMENT OF OPERATIONS
In 000's except per unit data
Three Months Ended | |||||||
June 30, | |||||||
2008 | 2007 | ||||||
(unaudited) | |||||||
Revenues | $ | (149,690 | ) | $ | 783,100 | ||
Expenses | 562,823 | 510,965 | |||||
(712,513 | ) | 272,135 | |||||
Income tax expense | (22,290 | ) | (2,190 | ) | |||
Non-controlling interests in (income) loss | 637,884 | (226,330 | ) | ||||
(Loss) income from continuing operations | (96,919 | ) | 43,615 | ||||
(Loss) income from discontinued operations | (1,924 | ) | 20,614 | ||||
Net (loss) earnings | $ | (98,843 | ) | $ | 64,229 | ||
Net (loss) earnings attributable to: | |||||||
Limited partners | $ | (96,876 | ) | $ | (25,010 | ) | |
General partner | (1,967 | ) | 89,239 | ||||
(98,843 | ) | 64,229 | |||||
Net (loss) earnings per LP unit: | |||||||
Basic and diluted earnings (loss): | |||||||
(Loss) income from continuing operations | $ | (1.35 | ) | $ | (0.73 | ) | |
Income from discontinued operations | (0.02 | ) | 0.33 | ||||
Basic and diluted loss per LP unit | $ | (1.37 | ) | $ | (0.40 | ) | |
Weighted average units outstanding | 70,490 | 61,857 |
APPENDIX I
CONSOLIDATED STATEMENT OF OPERATIONS
In 000's except per unit data
Six Months Ended | |||||||
June 30, | |||||||
2008 | 2007 | ||||||
(unaudited) | |||||||
Revenues | $ | 327,806 | $ | 1,737,511 | |||
Expenses | 1,054,581 | 1,026,161 | |||||
(726,775 | ) | 711,350 | |||||
Income tax expense | (32,725 | ) | (3,855 | ) | |||
Non-controlling interests in (income) loss | 643,696 | (480,555 | ) | ||||
(Loss) income from continuing operations | (115,804 | ) | 226,940 | ||||
Income from discontinued operations | 487,312 | 58,729 | |||||
Net earnings | $ | 371,508 | $ | 285,669 | |||
Net earnings (loss) attributable to: | |||||||
Limited partners | $ | 388,383 | $ | 69,646 | |||
General partner | (16,875 | ) | 216,023 | ||||
371,508 | 285,669 | ||||||
Net earnings (loss) per LP unit: | |||||||
Basic and diluted earnings (loss): | |||||||
(Loss) income from continuing operations | $ | (1.61 | ) | $ | 0.20 | ||
Income from discontinued operations | 7.12 | 0.93 | |||||
Basic and diluted earnings per LP unit | $ | 5.51 | $ | 1.13 | |||
Weighted average units outstanding | 70,490 | 61,857 |
APPENDIX III
CONSOLIDATED BALANCE SHEET
The following table presents Icahn Enterprises L.P.'s consolidated summary balance sheet data
(in 000's)
June 30, | December 31, | ||||||
2008 | 2007 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Investment Management Operations: | |||||||
Cash and cash equivalents | $ | 11,649 | $ | 26,027 | |||
Cash held at consolidated affiliated partnerships and restricted cash | 2,102,613 | 1,104,748 | |||||
Securities owned, at fair value | 6,433,524 | 5,920,209 | |||||
Unrealized gains on derivative contracts, at fair value | 79,522 | 110,181 | |||||
Due from brokers and other assets | 743,807 | 888,722 | |||||
9,371,115 | 8,049,887 | ||||||
All Other Operations: | |||||||
Cash and cash equivalents | 2,074,985 | 2,086,805 | |||||
Restricted cash | 1,182,604 | 41,681 | |||||
Investments | 279,088 | 512,560 | |||||
Inventories, net | 245,635 | 266,223 | |||||
Assets of discontinued operations held for sale | 15,113 | 632,277 | |||||
Property, plant and equipment, net | 520,423 | 533,127 | |||||
Other assets | 391,932 | 311,086 | |||||
4,709,780 | 4,383,759 | ||||||
Total Assets | 14,080,895 | 12,433,646 | |||||
LIABILITIES AND PARTNERS' EQUITY | |||||||
Investment Management Operations: | |||||||
Accounts payable, accrued expenses and other liabilities | $ | 238,064 | $ | 116,990 | |||
Deferred management fee payable to related party | 130,266 | 143,972 | |||||
Due to broker | 847,256 | - | |||||
Subscriptions received in advance | 4,250 | 144,838 | |||||
Payable for purchases of securities | 6,600 | 46,055 | |||||
Securities sold, not yet purchased, at fair value | 1,114,828 | 206,128 | |||||
Unrealized losses on derivative contracts, at fair value | 157,425 | 15,726 | |||||
2,498,689 | 673,709 | ||||||
All Other Operations: | |||||||
Accounts payable, accrued expenses, and other liabilities | 441,260 | 202,252 | |||||
Unrealized losses on derivative contracts, at fair value | 8,631 | 3,462 | |||||
Accrued environmental costs | 24,614 | 24,296 | |||||
Liabilities of discontinued operations held for sale | 3,749 | 317,345 | |||||
Debt | 2,035,376 | 2,041,453 | |||||
Preferred limited partnership units | 126,589 | 123,538 | |||||
2,640,219 | 2,712,346 | ||||||
Total Liabilities | 5,138,908 | 3,386,055 | |||||
Non-controlling interests | 6,302,752 | 6,734,563 | |||||
Partners' equity | 2,639,235 | 2,313,028 | |||||
Total Liabilities and Partners' Equity | $ | 14,080,895 | $ | 12,433,646 |