At $3.27 billion in revenue last year, the Clear Air Division is larger than the Ride Performance Division's $2.44 billion sales. Both divisions are profitable.
Among the Ride Performance Division's brands are Monroe and Rancho shock absorbers and Clevite noise/vibration/harshness-dampening components, while the Clear Air Division's brands include the Walker, Dynomax and Thrush exhaust systems.
In a conference call with financial analysts, Tenneco pointed out that the two businesses have "separate and natural competitors, customer needs, growth potential and economic drivers," which has steered the company's strategies since 2000.
In connection with the restructuring, Tenneco appointed Executive Vice Presidents Neal Yanos and Josep Fornos to lead the Clean Air and Ride Performance divisions, respectively. Both divisions will report to Hari Nair, chief operating officer.
In line with the organizational changes, the company's financial reporting segments will change into three geographical segments split along product lines: Clean Air North America; Clean Air Europe, South America and India; Clean Air Asia Pacific; Ride Performance North America; Ride Performance Europe, South America and India; and Ride Performance Asia Pacific.
Tenneco said full-year estimates indicate an overall improving production environment in 2013, especially in the second half of the year.
Tenneco said it expects its OE revenue this year to be in the range of $6.4 billion to $6.8 billion including commercial vehicle revenue of $900 million to $1.1 billion, while OE revenues in 2014 should be in the range of $7.2 billion to $7.7 billion, including commercial vehicle revenue of $1.3 billion to $1.6 billion.
"Our excellent position in light vehicle markets globally and our strong book of commercial vehicle business will drive revenue growth in 2013 in the face of macroeconomic conditions that continue to negatively impact production volumes, particularly early in the year," Mr. Sherrill said.
"In 2014, we expect both the light and commercial vehicle production environments to strengthen, and with significant incremental commercial vehicle regulatory content, we are well-positioned to enjoy a year of high revenue growth. Additionally, our strong global aftermarket should continue to contribute stable revenues throughout this period."
