LAKE FOREST, Ill. (Jan. 18, 2013) — Automotive supplier Tenneco Inc.'s board of directors has approved a share repurchase program.
The board authorized the repurchase of up to 550,000 shares of the company's outstanding common stock over the next 12 months. The repurchase program is intended to offset dilution from shares of restricted stock, Lake Forest-based Tenneco said, and stock options that were issued to employees in 2013 under the firm's long-term compensation plan.
Tenneco said it has completed similar repurchases of common stock in 2011 and last year "while remaining committed to further improving its financial position and investing in strategic initiatives."
The company anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations. The repurchase program does not obligate Tenneco to make repurchases at any specific time or situation, the company said.
Tenneco designs, manufactures and markets emission control and ride control products and systems for the automotive and commercial vehicle original equipment markets and the aftermarket, principally under the Monroe, Walker and CleviteElastomer brand names.