By Isabella Shaya, Crain News Service
LAKE FOREST, Ill. (July 30, 2013) — Tenneco Inc., a supplier of ride-control and emission-control systems, reported higher-than-expected adjusted net income along with record revenue for any quarter.
The company posted adjusted net income of $68 million, or $1.10 per diluted share, down from $70 million last year.
The lower profits stemmed from a higher tax rate this year, the company said, but the adjusted results still beat analyst expectations by 1 cent per share.
Net income for the second quarter was $63 million, or $1.02 per diluted share, down from $87 million in the year-earlier period.
Second-quarter revenue was up 8 percent to a record $2.07 billion, according to Tenneco.
Revenue from the clean air division rose 10 percent to $1.41 billion because of increased light-vehicle production in North America, South America and China and revenue growth from commercial and light vehicles in Europe, the company said.
A Tenneco spokesman said during a conference call July 29 that the company expects European production to be down slightly for the rest of the year.
Revenue from the ride-performance division increased 2 percent to $661 million, mostly as a result of strong light-vehicle production in China.
"We delivered another solid quarter with top-line growth in both product divisions driven by stronger global light-vehicle production, higher commercial vehicle revenue in Europe and South America and a solid contribution from our global aftermarket business," Tenneco CEO Gregg Sherrill said in a statement.
Lake Forest-based Tenneco ranks No. 36 on Automotive News' list of the top 100 global suppliers with worldwide parts sales to auto makers of $6.1 billion in 2012.
This report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.