Icahn Enterprises L.P. Reports Strong First Quarter 2013 Financial Results

Icahn Enterprises L.P. Reports Strong First Quarter 2013 Financial Results

Q1 2013 Highlights:

  *First Quarter 2013 Net Income attributable to Icahn Enterprises of $277
    million, or $2.50 per LP unit
  *Adjusted EBITDA attributable to Icahn Enterprises of $621 million for Q1
    2013, up nearly 200% from prior year
  *Increased annual distribution to $4.00 per unit.

NEW YORK, May 3, 2013 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (Nasdaq:IEP)
is reporting revenues of $5.3 billion for the three months ended March 31,
2013, and net income attributable to Icahn Enterprises of $277 million, or
$2.50 per LP unit. For the three months ended March 31, 2012, revenues were
$2.7 billion and net income attributable to Icahn Enterprises was $49 million,
or $0.48 per LP unit.

For the first quarter of 2013, Adjusted EBITDA attributable to Icahn
Enterprises was $621 million compared to $213 million in the first quarter of
2012.

For the first quarter of 2013, Adjusted EBIT attributable to Icahn Enterprises
was $507 million compared to $135 million in the first quarter of 2012.

Carl C. Icahn, Icahn Enterprises' Chairman stated: "Our performance this
quarter in particular and over the past decade in general, highlights the fact
that an activist strategy when properly implemented can greatly enhance value
for all shareholders."

Icahn Enterprises L.P. (Nasdaq:IEP), a master limited partnership, is a
diversified holding company engaged in nine primary business segments:
Investment, Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Real
Estate and Home Fashion.

Caution Concerning Forward-Looking Statements

Results for any interim period are not necessarily indicative of results for
any full fiscal period. 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 economic downturns, substantial competition and rising operating
costs; risks related to our investment activities, including the nature of the
investments made by the private funds in which we invest, losses in the
private funds and loss of key employees; risks related to our automotive
activities, including exposure to adverse conditions in the automotive
industry, and risks related to operations in foreign countries; risks related
to our energy business, including the volatility and availability of crude
oil, other feed stocks and refined products, unfavorable refining margin
(crack spread), interrupted access to pipelines, significant fluctuations in
nitrogen fertilizer demand in the agricultural industry and seasonality of
results; risk related to our gaming operations, including reductions in
discretionary spending due to a downturn in the local, regional or national
economy, intense competition in the gaming industry from present and emerging
internet online markets and extensive regulation; risks related to our railcar
activities, including reliance upon a small number of customers that represent
a large percentage of revenues and backlog, the health of and prospects for
the overall railcar industry and the cyclical nature of the railcar
manufacturing business; risks related to our food packaging activities,
including competition from better capitalized competitors, inability of its
suppliers to timely deliver raw materials, and the failure to effectively
respond to industry changes in casings technology; risks related to our scrap
metals activities, including potential environmental exposure; risks related
to our real estate activities, including the extent of any tenant bankruptcies
and insolvencies; risks related to our home fashion operations, including
changes in the availability and price of raw materials, and changes in
transportation costs and delivery times; and other risks and uncertainties
detailed from time to time in our filings with the Securities and Exchange
Commission. Past performance in our Investment segment is not necessarily
indicative of future performance. We undertake no obligation to publicly
update or review any forward-looking information, whether as a result of new
information, future developments or otherwise.

CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per unit amounts)
                                                                 
                                                                 
                                                     Three Months Ended March
                                                      31,
                                                     2013         2012
Revenues:                                             (Unaudited)
Net sales                                            $4,574       $2,399
Other revenues from operations                       189          192
Net gain from investment activities                  578          58
Interest and dividend income                         24           25
Other (loss) income, net                             (46)         10
                                                     5,319        2,684
Expenses:                                                         
Cost of goods sold                                   3,893        2,072
Other expenses from operations                       100          106
Selling, general and administrative                  369          309
Restructuring                                        8            7
Impairment                                           —            2
Interest expense                                     134          117
                                                     4,504        2,613
Income before income tax (expense) benefit           815          71
Income tax (expense) benefit                         (120)        30
Net income                                           695          101
Less: net income attributable to non-controlling      (418)        (52)
interests
Net income attributable to Icahn Enterprises         $277         $49
                                                                 
Net income attributable to Icahn Enterprises                      
allocable to:
Limited partners                                     $271         $48
General partner                                      6            1
                                                     $277         $49
                                                                 
Basic income per LP unit                             $2.56        $0.48
Basic weightedaverageLPunitsoutstanding          106          99
                                                                 
Diluted income per LP unit                           $2.50        $0.48
Diluted weightedaverageLPunitsoutstanding        109          99
Cash distributions declared per LP unit              $1.00        $0.10


CONSOLIDATED BALANCE SHEETS
(In millions, except unit amounts)
                                                                
                                                     March 31,   December 31,
                                                     2013        2012
ASSETS                                                (Unaudited)
Cash and cash equivalents                            $2,437      $3,071
Cash held at consolidated affiliated partnerships and 1,424       1,419
restricted cash
Investments                                          7,690       5,491
Accounts receivable, net                             2,028       1,841
Due from brokers                                     50          94
Inventories, net                                     1,968       1,955
Property, plant and equipment, net                   6,571       6,523
Goodwill                                             2,089       2,082
Intangible assets, net                               1,180       1,206
Other assets                                         824         874
Total Assets                                          $26,261     $24,556
LIABILITIES AND EQUITY                                           
Accounts payable                                     $1,349      $1,383
Accrued expenses and other liabilities               1,920       1,496
Deferred tax liability                               1,398       1,335
Securities sold, not yet purchased, at fair value    620         533
Due to brokers                                       423         —
Post-employment benefit liability                    1,438       1,488
Debt                                                 8,184       8,548
Total liabilities                                    15,332      14,783
                                                                
Commitments and contingencies                                    
                                                                
Equity:                                                          
Limited partners: Depositary units: 108,025,417 and
104,850,813 units issued and outstanding at March 31, 5,304       4,913
2013 and December 31, 2012, respectively
General partner                                      (236)       (244)
Equity attributable to Icahn Enterprises             5,068       4,669
Equity attributable to non-controlling interests     5,861       5,104
Total equity                                         10,929      9,773
Total Liabilities and Equity                         $26,261     $24,556

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in evaluating its
performance. These include non-GAAP EBITDA, Adjusted EBITDA, EBIT and Adjusted
EBIT.EBITDA represents earnings before interest expense, income tax (benefit)
expense and depreciation and amortization.EBIT represents earnings before
interest expense and income tax (benefit) expense.We define Adjusted EBITDA
and Adjusted EBIT as EBITDA and EBIT, respectively, excluding the effects of
impairment, restructuring costs, certain pension plan expenses, OPEB
curtailment gains, purchase accounting inventory adjustments, certain share
based compensation, discontinued operations, gains/losses on extinguishment of
debt, major scheduled turnaround expenses, FIFO adjustments and unrealized
gains/losses on energy segment derivatives and certain other non-operational
charges.We present EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT on a
consolidated basis and attributable to Icahn Enterprises net of the effect of
non-controlling interests.We conduct substantially all of our operations
through subsidiaries.The operating results of our subsidiaries may not be
sufficient to make distributions to us.In addition, our subsidiaries are not
obligated to make funds available to us for payment of our indebtedness,
payment of distributions on our depositary units or otherwise, and
distributions and intercompany transfers from our subsidiaries to us may be
restricted by applicable law or covenants contained in debt agreements and
other agreements to which these subsidiaries currently may be subject or into
which they may enter into in the future.The terms of any borrowings of our
subsidiaries or other entities in which we own equity may restrict dividends,
distributions or loans to us.

We believe that providing EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT to
investors has economic substance as these measures provide important
supplemental information of our performance to investors and permits investors
and management to evaluate the core operating performance of our business
without regard to interest, taxes and depreciation and amortization and the
effects of impairment, restructuring costs, certain pension plan expenses,
OPEB curtailment gains, purchase accounting inventory adjustments, certain
share based compensation, discontinued operations, gains/losses on
extinguishment of debt, major scheduled turnaround expenses, FIFO adjustments
and unrealized gains/losses on energy segment derivatives and certain other
non-operational charges.Additionally, we believe this information is
frequently used by securities analysts, investors and other interested parties
in the evaluation of companies that have issued debt.Management uses, and
believes that investors benefit from referring to these non-GAAP financial
measures in assessing our operating results, as well as in planning,
forecasting and analyzing future periods.Adjusting earnings for these charges
allows investors to evaluate our performance from period to period, as well as
our peers, without the effects of certain items that may vary depending on
accounting methods and the book value of assets.Additionally, EBITDA,
Adjusted EBITDA, EBIT and Adjusted EBIT present meaningful measures of
corporate performance exclusive of our capital structure and the method by
which assets were acquired and financed.

EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT have limitations as analytical
tools, and you should not consider them in isolation, or as substitutes for
analysis of our results as reported under generally accepted accounting
principles in the United States, or U.S. GAAP.For example, EBITDA, Adjusted
EBITDA, EBIT and Adjusted EBIT:

  *do not reflect our cash expenditures, or future requirements for capital
    expenditures, or contractual commitments;
  *do not reflect changes in, or cash requirements for, our working capital
    needs; and
  *do not reflect the significant interest expense, or the cash requirements
    necessary to service interest or principal payments on our debt.

Although depreciation and amortization are non-cash charges, the assets being
depreciated or amortized often will have to be replaced in the future, and
EBITDA and Adjusted EBITDA do not reflect any cash requirements for such
replacements.Other companies in the industries in which we operate may
calculate EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT differently than we
do, limiting their usefulness as comparative measures.In addition, EBITDA,
Adjusted EBITDA, EBIT and Adjusted EBIT do not reflect the impact of earnings
or charges resulting from matters we consider not to be indicative of our
ongoing operations.

EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT are not measurements of our
financial performance under U.S. GAAP and should not be considered as
alternatives to net income or any other performance measures derived in
accordance with U.S. GAAP or as alternatives to cash flow from operating
activities as a measure of our liquidity.Given these limitations, we rely
primarily on our U.S. GAAP results and use EBITDA, Adjusted EBITDA, EBIT and
Adjusted EBIT only as a supplemental measure of our financial performance.

Use of Indicative Net Asset Value Data

The Company uses the indicative net asset value of the depository units as an
additional method for considering the value of the units, and we believe that
this information can be helpful to investors.Please note, however, that the
indicative net asset value of the units does not represent the market price at
which the units trade.Accordingly, data regarding indicative net asset value
is of limited use and should not be considered in isolation.

The Company's depository units are not redeemable, which means that investors
have no right or ability to obtain from the Company the indicative net asset
value of units that they own.Units may be bought and sold on The NASDAQ
Global Select Market at prevailing market prices.Those prices may be higher
or lower than the indicative net asset value of the units as calculated by
Management.

See below for more information on how we calculate the indicative net asset
value of the Company's depository units.

Indicative Net Asset Value Calculation                    
                                                         
($ in millions, except per unit)       March 31,           December 31,
                                      2013                2012
Market-valued Subsidiaries:            (Unaudited)
Holding Company interest in Funds (1) $2,613              $2,387
CVR Energy (2)                        3,675               3,474
CVR Refining – direct holding (2)     139                 --
Federal-Mogul (2)                     462                 615
American Railcar Industries (2)       555                 377
Total market-valued subsidiaries      $7,444              $6,853
                                                         
Other Subsidiaries                                        
Tropicana (3)                         $551                $488
Viskase (3)                           277                 268
Real Estate Holdings (4)              696                 763
PSC Metals (4)                        334                 338
WestPoint Home (4)                    207                 256
Total - other subsidiaries            $2,065              $2,113
Add:Holding Company cash and cash     755                 1,047
equivalents (5)
Less:Holding Company debt (6)        (3,525)             (4,082)
Add:Other Holding Company net assets  137                 63
(7)
Indicative Net Asset Value            $6,876              $5,993
                                                         
Units Outstanding (8)                 110.2               107.0
Indicative Net Asset Value Per Unit    $62.39              $56.02
                                                         
                                                         
Indicative net asset value does not purport to reflect a valuation of IEP.The
calculated Indicative net asset value does not include any value for our
Investment Segment other than the fair market value of our investment in the
Investment Funds.A valuation is a subjective exercise and Indicative net
asset value does not necessarily consider all elements or consider in the
adequate proportion the elements that could affect the valuation of
IEP.Investors may reasonably differ on what such elements are and their
impact on IEP.No representation or assurance, express or implied is made as
to the accuracy and correctness of indicative net asset value as of these
dates or with respect to any future indicative or prospective results which
may vary.
                                                         
(1) Fair market value of Holding Company's interest in the Funds and
Investment segment cash as of each respective date.
(2) Based on closing share price on each date and the number of shares owned
by the Holding Company as of each respective date.
(3) Amounts based on market comparables due to lack of material trading
volume.Tropicana valued at 9.0x and 8.0x Adjusted EBITDA for the twelve
months ended March 31, 2013 and the twelve months ended December 31, 2012,
respectively.Viskase valued at 11.0x Adjusted EBITDA for the twelve months
ended March 31, 2013 and the twelve months ended December 31, 2012.
(4) Represents equity attributable to us as of each respective date.
(5) Holding Company's cash and cash equivalents balance as of each respective
date.
(6) Represents Holding Company debt as reported on March 31, 2013, adjusted
for the defeasance of the Convertible Notes and December 31, 2012.
(7) Represents Holding Company net assets as reported on March 31, 2013,
adjusted for the defeasance of the Convertible Notes and December 31, 2012.
(8) LP Units Outstanding and the GP Unit equivalent as of each respective
date.

                                      
($ in millions)                        Three Months Ended March 31,
                                      2013            2012
Consolidated Adjusted EBITDA:          (Unaudited)
Net income                            $695            $101
Interest expense, net                 133             115
Income tax (benefit) expense          120             (30
Depreciation and amortization         155             100
Consolidated EBITDA                   $1,103          $286
Impairment of assets                  —               2
Restructuring costs                   8               7
Non-Service cost US based pensions    2               10
Unfavorable FIFO impact               (5)             —
Unrealized (gain)/loss on derivatives (32)            —
Stock-based compensation              12              —
Loss on discontinued operations       47              —
Other                                 (2)             5
Consolidated Adjusted EBITDA           $1,133          $310
                                                     
IEP Adjusted EBITDA:                                 
Net income attributable to IEP        $277            $49
Interest expense, net                 119             103
Income tax (benefit) expense          93              (36)
Depreciation and amortization         114             78
EBITDA attributable to IEP            $603            $194
Impairment of assets                  —               2
Restructuring costs                   6               6
Non-Service cost US based pensions    2               8
Unfavorable FIFO impact               (5)             —
Unrealized (gain)/loss on derivatives (26)            —
Stock-based compensation              7               —
Loss on discontinued operations       36              
Other                                 (2)             3
Adjusted EBITDA attributable to IEP   $621            $213

                                      
($ in millions)                        Three Months Ended March 31,
                                      2013           2012
Consolidated Adjusted EBIT:            (Unaudited)
Net income                            $695           $101
Interest expense, net                 133            115
Income tax (benefit) expense          120            (30)
Consolidated EBIT                     $948           $186
Impairment of assets                  —              2
Restructuring costs                   8              7
Non-Service cost US based pensions    2              10
Unfavorable FIFO impact               (5)            —
Unrealized (gain)/loss on derivatives (32)           —
Stock-based compensation              12             —
Loss on discontinued operations       47             —
Other                                 (2)            5
Consolidated Adjusted EBIT            $978           $210
                                                    
IEP Adjusted EBIT:                                  
Net income attributable to IEP        $277           $49
Interest expense, net                 119            103
Income tax (benefit) expense          93             (36)
EBIT attributable to IEP              $489           $116
Impairment of assets                  —              2
Restructuring costs                   6              6
Non-Service cost US based pensions    2              8
Unfavorable FIFO impact               (5)            —
Unrealized (gain)/loss on derivatives (26)           —
Stock-based compensation              7              —
Loss on discontinued operations       36             —
Other                                 (2)            3
Adjusted EBIT attributable to IEP     $507           $135

CONTACT: Investor Contacts:
         SungHwan Cho, Chief Financial Officer
         Peter Reck, Chief Accounting Officer
         (212) 702-4300
 
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