Icahn Enterprises Hit By Energy Investments In Q3

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Icahn Enterprises LP (NASDAQ:IEP), a diversified holding company headed by activist investor Carl Icahn reported that its financial results for the third quarter were negatively affected by its energy investments.

The shares of Icahn Enterprises LP (NASDAQ:IEP) were trading $102.08 per share, down by more than 3% at the time of this writing around 1:35 in the afternoon in New York.

Third-quarter financial results

Icahn Enterprises suffered a net loss of $355 million or $2.90 per depositary unit for the third quarter. The company said its quarterly revenue was $4.4 billion. Its adjusted EBITDA was -$2 million and adjusted EBIT was -$152 million.

During the same period last year, Icahn Enterprises LP (NASDAQ:IEP) achieved a net income of $472 million or $4.10 per depositary unit on $5.8 billion in revenue. Its adjusted EBITDA was $714 million and adjusted EBIT was $594 million.

Commenting on the company’s financial performance, Mr. Icahn said, “Our investment segment incurred a loss attributable to Icahn Enterprises of $270 million for the quarter. This loss was driven by a meaningful decrease in the value of our core energy investments.

According to Mr. Icahn, CVR Refining LP (NYSE:CVRR) became profitable with solid crude throughput during the quarter despite the impact from downtime caused by a fire than happened in late July at the Coffeyville refinery.

On the other hand, Mr. Icahn said Federal-Mogul Holdings Corp (NASDAQ:FDML) made significant development on its strategic initiatives particularly its plan to separate is Powertrain and Motorparts businesses into two, independent publicly traded companies.

In addition, Mr. Icahn emphasized that American Railcar Industries, Inc. (NASDAQ:ARII) achieved a record revenue and earnings for the quarter driven by continued strong demand for tank and covered hopper rail cars.

Mr. Icahn said “there have always been sporadic bumps along the road,” but he is extremely proud of the long-term record of Icahn Enterprises LP (NASDAQ:IEP). He believes that the company’s business model will continue to be one of the best in the world over the long-term.

Furthermore, Mr. Icahn pointed out that the business model of Icahn Enterprises LP (NASDAQ:IEP) was proven by the fact that if an investor purchased a stake in its depositary unit in the beginning of 2000 and held it until September 30, 2014, the investor would have earned an annualized return of around 22%.

Icahn Enterprises declared dividend

The board of directors of the general partner of Icahn Enterprises LP (NASDAQ:IEP) declared a quarterly dividend of $1.50 per depositary unit. The quarterly distribution will be payable in either cash or additional depositary units on December 24 to shareholders of record at the close of the business on November 17.

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