Icahn Investments Hit by Energy, Posts First Annual Loss Since 2008 -- Update

By Chelsey Dulaney 

Carl Icahn's investment portfolio posted its first annual loss since 2008 last year amid tumbling oil prices, though the holding company said Apple Inc.'s recent performance helped soften the blow.

The famed investor's publicly traded company, Icahn Enterprises LP, swung to a loss of $373 million in 2014 from a profit of $1.03 billion in 2013. For the December quarter, the company posted a loss of $478 million, compared with a year-earlier profit of $222 million, as revenue fell 31% to $3.37 billion.

"This year's results were obviously disappointing, with the precipitous decline in oil prices impacting the profitability of many of our segments," said Mr. Icahn in a news release.

The results for the year included a $564 million loss from investment activities, compared with a gain of $1.69 billion in 2013. The key culprit, the company said, was energy investments. Oil prices have declined about 50% from June's peak.

Among the stocks in the Icahn portfolio are Chesapeake Energy Corp., which is down nearly 30% in the past year, and Transocean Ltd., which has fallen 63% in the same period.

Meanwhile, Apple, in which Icahn holds a nearly $7 billion stake, has gained 73% in the past year.

Mr. Icahn said he believes a "great amount of profit" will be made in the next few years by those who hold positions in energy companies, but he also predicted oil prices will continue to decline in the near term.

As for Apple, he said: "I look forward to wearing the watch in the very near future and possibly driving the car in the more distant future."

Write to Chelsey Dulaney at [e-mail]

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