Tenneco issues Q4 adjusted earnings

By Hannah Lutz, Crain News Service

LAKE FOREST, Ill. (Feb. 4, 2015) — Tenneco Inc., a supplier of ride control components and emission control systems, said Feb. 2 its adjusted fourth-quarter net income rose to $65 million from $59 million a year earlier.

Unadjusted net income for the quarter was $21 million, which included $46 million in restructuring, pension and refinancing related expenses, a company statement said. Fourth quarter net income a year earlier was $54 million, or 88 cents per diluted share.

Revenue dipped slightly to $2.004 billion, from $2.031 billion a year earlier.

The decrease is “due to the impact of $84 million in negative currency, as well as lower commercial truck and off-highway revenue. Excluding currency, total revenue in the fourth quarter increased 3 percent to $2.088 billion,” the statement said.

“We had strong fourth quarter earnings with record high adjusted net income and EBIT (earnings before interest and taxes) including improvement in both divisions despite significant currency headwinds,” Gregg Sherrill, Tenneco CEO, said in the statement.

Clean air products generated $1.4 billion in revenue for the fourth quarter, in line with a year earlier. Ride performance dropped slightly at $609 million, compared to $617 million a year earlier.

Light-vehicle revenue remained consistent with the fourth quarter of 2013 at $1.47 billion, according to the Lake Forest-based company.

For the full year, Tenneco reported adjusted earnings of $288 million compared with $233 million for 2013. The company posted its highest total revenue of $8.4 billion, a 6 percent increase from 2013.

“For the full year we delivered our highest ever revenue and EBIT. These results were driven by our strong light vehicle platform position, which helped us outpace industry light vehicle production, double-digit revenue growth in our commercial truck and off-highway business and higher global aftermarket sales,” Mr. Sherrill said.

“We leveraged higher global light vehicle volumes and delivered a solid operational performance to drive higher earnings and improved profitability.”

For the full year 2015, Tenneco said it expects revenue growth between 5 and 8 percent, excluding the impact of foreign currency.

The company also said it will repurchase up to $350 million of the company's outstanding common stock over the next three years as part of its overall capital allocation strategy.

This report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.