Icahn Enterprises L.P. Reports Third Quarter 2013 Financial Results

Icahn Enterprises L.P. Reports Third Quarter 2013 Financial Results

  *Third quarter IEP net income of $472 million, or $4.10 per LP unit, up
    from $0.75 in the prior year
  *Adjusted EBITDA attributable to Icahn Enterprises of $716 million for Q3
    2013, up 43% from prior year
  *Announces Quarterly Dividend of $1.25 per Depositary Unit
  *Indicative net asset value is up 33% for the nine months ended September
    30, 2013

NEW YORK, Nov. 4, 2013 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (Nasdaq:IEP)
is reporting revenues of $5.7 billion for the three months ended September 30,
2013 and net income attributable to Icahn Enterprises of $472 million, or
$4.10 per LP unit. For the three months ended September 30, 2012, revenues
were $4.5 billion and net income attributable to Icahn Enterprises was $84
million, or $0.75 per LP unit. For the third quarter of 2013, Adjusted EBITDA
attributable to Icahn Enterprises was $716 million compared to $501 million in
the third quarter of 2012. For the third quarter of 2013, Adjusted EBIT
attributable to Icahn Enterprises was $596 million compared to $380 million in
the third quarter of 2012.

For the nine months ended September 30, 2013, revenues were $15.7 billion and
net income attributable to Icahn Enterprises was $803 million, or $7.17 per LP
unit. For the nine months ended September 30, 2012, revenues were $11.4
billion and net income attributable to Icahn Enterprises was $390 million, or
$3.69 per LP unit. For the nine months ended September 30, 2013, Adjusted
EBITDA attributable to Icahn Enterprises was $1.6 billion compared to $1.2
billion for nine months ended September 30, 2012. For the nine months ended
September 30, 2013, Adjusted EBIT attributable to Icahn Enterprises was $1.3
billion compared to $912 million for nine months ended September 30, 2012.
Icahn Enterprises has received over $1.1 billion of cash distributions from
its operating subsidiaries during the first nine months of 2013.

Mr. Icahn stated, "I believe that by far the best method to utilize in
investing is the 'Activist' model.I have spent a great deal of time and
effort perfecting its use and I am happy to say that IEP has been a
beneficiary of this.An investment in IEP stock made at the beginning of 2000
has increased by approximately 1,500%, or an average annual return of 22%,
through October 31, 2013.But perhaps more compelling is that since April 1,
2009, when the economic recovery started:1) an investment in IEP stock
resulted in a total return of 347%, or an average annual return of 39%,
through October 31, 2013, and 2) IEP's indicative net asset value has
increased during this period by 282%, or an average annual return of 35%,
through September 30, 2013. Most importantly to current IEP unit holders is
that in my opinion there has never been a better time than today for activist
investing, if practiced properly.Several factors are responsible for this: 1)
extremely low interest rates, which make acquisitions much less costly and
therefore much more attractive, and 2) the current awareness by many
institutional investors that the prevalence of mediocre top management and
non-caring boards at many of America's companies must be dealt with if we are
ever going to end high unemployment and be able to compete in world markets.I
believe that the greatly increasing need for a catalyst to make acquisitions
possible and to make mediocre managements accountable will be of meaningful
benefit to IEP in future years.As a corollary, I expect that low interest
rates will greatly increase the ability of the companies IEP controls to make
judicious, friendly or not so friendly, acquisitions.

"As a consequence of the above, while I am very proud of IEP's record over the
past decade, I believe this record will pale in comparison to what is yet to
come."

On November 1, 2013, the Board of Directors of the general partner of Icahn
Enterprises declared a quarterly distribution in the amount of $1.25 per
depositary unit, which will be paid on or about January 13, 2014 to depositary
unit holders of record at the close of business on November 14, 2013.

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      Nine Months Ended
                                        Ended            September 30,
                                         September 30,
                                        2013     2012     2013      2012
Revenues:                                (Unaudited)
Net sales                               $4,181 $4,519 $13,252 $10,625
Other revenues from operations          213      215      605       611
Net gain (loss) from investment          1,201    (81)     1,551     276
activities
Interest and dividend income            44       21       120       63
Other income (loss), net                82       (171)   130       (162)
                                        5,721    4,503    15,658    11,413
Expenses:                                                         
Cost of goods sold                      3,825    3,702    11,605    9,026
Other expenses from operations          113      111      318       325
Selling, general and administrative     368      285      1,050     930
Restructuring                           5        5        22        21
Impairment                              2        53       7         87
Interest expense                        131      138      391       384
                                        4,444    4,294    13,393    10,773
Income before income tax (expense)       1,277    209      2,265     640
benefit
Income tax (expense) benefit            (57)    (110)   (274)    21
Net income                              1,220    99       1,991     661
Less: net income attributable to         (748)   (15)    (1,188)  (271)
non-controlling interests
Net income attributable to Icahn         $472   $84    $803    $390
Enterprises
                                                                 
Net income attributable to Icahn                                  
Enterprises allocable to:
Limited partners                        $463   $77    $787    $374
General partner                         9        7        16        16
                                        $472   $84    $803    $390
                                                                 
Basic income per LP unit                $4.13  $0.75  $7.22   $3.70
Basic                                    112      103      109       101
weightedaverageLPunitsoutstanding
                                                                 
Diluted income per LP unit              $4.10  $0.75  $7.17   $3.69
Diluted                                  113      103      110       106
weightedaverageLPunitsoutstanding
Cash distributions declared per LP unit $1.25  $0.10  $3.25   $0.30
                                                                 

CONSOLIDATED BALANCE SHEETS
(In millions, except unit amounts)
                                                                
                                                   September 30, December 31,
                                                   2013          2012
ASSETS                                              (Unaudited)   
Cash and cash equivalents                          $3,274      $3,071
Cash held at consolidated affiliated partnerships   1,430         1,419
and restricted cash
Investments                                        12,275        5,491
Accounts receivable, net                           1,871         1,841
Inventories, net                                   2,093         1,955
Property, plant and equipment, net                 6,763         6,523
Goodwill                                           2,074         2,082
Intangible assets, net                             1,133         1,206
Other assets                                       868           968
Total Assets                                        $31,781     $24,556
LIABILITIES AND EQUITY                                           
Accounts payable                                   $1,359      $1,383
Accrued expenses and other liabilities             2,281         1,496
Deferred tax liability                             1,526         1,335
Securities sold, not yet purchased, at fair value  704           533
Due to brokers                                     3,718         —
Post-employment benefit liability                  1,391         1,488
Debt                                               8,155         8,548
Total liabilities                                  19,134        14,783
                                                                
Commitments and contingencies                                    
                                                                
Equity:                                                          
Limited partners: Depositary units: 112,384,570 and
104,850,813 units issued and outstanding at         5,943         4,913
September 30, 2013 and December 31, 2012,
respectively
General partner                                    (223)        (244)
Equity attributable to Icahn Enterprises           5,720         4,669
Equity attributable to non-controlling interests   6,927         5,104
Total equity                                       12,647        9,773
Total Liabilities and Equity                        $31,781     $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
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 principalpayments 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 indicative net asset value as an additional method for
considering the value of the Company's assets, and we believe that this
information can be helpful to investors.Please note, however, that the
indicative net asset value 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 Company's indicative
net asset value.

($ in millions)                                    September 30, December 31,
                                                  2013          2012
Market-valued Subsidiaries:                        (unaudited)
Holding Company interest in Funds (1)              $3,573      $2,387
CVR Energy (2)                                     2,743         3,474
CVR Refining - direct holding (2)                  150           —
Federal-Mogul (2)                                  2,033         615
American Railcar Industries (2)                    466           377
Total market-valued subsidiaries                   $8,965      $6,853
                                                               
Other Subsidiaries:                                             
Tropicana (3)                                      $528        $512
Viskase (3)                                        278           268
Real Estate Holdings (4)                           723           763
PSC Metals (4)                                     302           338
WestPoint Home (4)                                 205           256
AEP Leasing (4)                                    214           60
Total - other subsidiaries                         $2,250      $2,196
Add:Holding Company cash and cash equivalents (5) 958           1,045
Less:Holding Company debt (6)                     (4,017)      (4,082)
Add:Other Holding Company net assets (7)          (72)         86
Indicative Net Asset Value                         $8,084      $6,098

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 Adjusted EBITDA for the twelve months ended
September 30, 2013 and 8.0x Adjusted EBITDA for the twelve months ended
December 31, 2012.Viskase valued at 10.0x Adjusted EBITDA for the twelve
months ended September 30, 2013 and 11.0x for 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)Holding Company's debt balance as of each respective date.

(7)Represents Holding Company net assets as of each respective date.

($ in millions)                       Three Months Ended Nine Months Ended
                                      September 30,       September 30,
                                     2013       2012     2013     2012
Consolidated Adjusted EBITDA:         (Unaudited)
Net income                            $1,220   $99    $1,991 $661
Interest expense, net                 129        137      385      378
Income tax expense (benefit)          57         110      274      (21)
Depreciation and amortization         165        156      479      389
Consolidated EBITDA                   $1,571   $502   $3,129 $1,407
Impairment of assets                  2          53       7        87
Restructuring costs                   5          5        22       21
Non-Service cost US based pensions    2          9        4        26
(Favorable) unfavorable FIFO impact   (54)      (51)    (83)    48
Unrealized (gain)/loss on derivatives (39)      116     (177)   118
OPEB curtailment gain                 —          (51)    (19)    (51)
Loss (gain) on disposal of assets     5          (1)     57      (2)
Stock-based compensation              9          7        21       24
Other                                 4          10       21       32
Consolidated Adjusted EBITDA          $1,505   $599   $2,982 $1,710
                                                               
IEP Adjusted EBITDA:                                            
Net income attributable to IEP        $472     $84    $803   $390
Interest expense, net                 114        121      346      337
Income tax expense (benefit)          46         85       211      (60)
Depreciation and amortization         120        121      343      303
EBITDA attributable to IEP            $752     $411   $1,703 $970
Impairment of assets                  2          42       7        68
Restructuring costs                   4          4        17       16
Non-Service cost US based pensions    2          7        4        20
(Favorable) unfavorable FIFO impact   (33)      (42)    (54)    34
Unrealized (gain)/loss on derivatives (24)      95      (121)   96
OPEB curtailment gain                 —          (39)    (15)    (39)
Loss on disposal of assets            4          (1)     44       (2)
Stock-based compensation              7          13       14       26
Other                                 2          11       15       26
Adjusted EBITDA attributable to IEP   $716     $501   $1,614 $1,215
                                                               

($ in millions)                       Three Months Ended Nine Months Ended
                                      September 30,       September 30,
                                     2013       2012     2013     2012
Consolidated Adjusted EBIT:           (Unaudited)
Net income                            $1,220   $99    $1,991 $661
Interest expense, net                 129        137      385      378
Income tax expense (benefit)          57         110      274      (21)
Consolidated EBIT                     $1,406   $346   $2,650 $1,018
Impairment of assets                  2          53       7        87
Restructuring costs                   5          5        22       21
Non-Service cost US based pensions    2         9       4       26
(Favorable) unfavorable FIFO impact   (54)      (51)    (83)    48
Unrealized (gain)/loss on derivatives (39)      116     (177)   118
OPEB curtailment gain                 —        (51)    (19)    (51)
Loss (gain) on disposal of assets     5         (1)     57      (2)
Stock-based compensation              9          7        21       24
Other                                 4          10       21       32
Consolidated Adjusted EBIT            $1,340   $443   $2,503 $1,321
                                                               
IEP Adjusted EBIT:                                              
Net income attributable to IEP        $472     $84    $803   $390
Interest expense, net                 114        121      346      337
Income tax expense (benefit)          46         85       211      (60)
EBIT attributable to IEP              $632     $290   $1,360 $667
Impairment of assets                  2          42       7        68
Restructuring costs                   4          4        17       16
Non-Service cost US based pensions    2          7        4        20
(Favorable) unfavorable FIFO impact   (33)      (42)    (54)    34
Unrealized (gain)/loss on derivatives (24)      95      (121)   96
OPEB curtailment gain                 —        (39)    (15)    (39)
Loss on disposal of assets            4         (1)     44      (2)
Stock-based compensation              7          13       14       26
Other                                 2          11       15       26
Adjusted EBIT attributable to IEP     $596     $380   $1,271 $912
                                                               

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