EX-99.1 2 v122793_ex99-1.htm Unassociated Document
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.

* * *

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