LAKE FOREST, Ill. (April 21, 2015) — In advance of unveiling its first quarter earnings, automotive supplier Tenneco Inc. has re-affirmed its positive revenue growth in the quarter, excluding currency, and providing additional financial information.
The company plans to report first quarter financial results before the market opens on April 27.
Tenneco confirmed that it expects first quarter total revenue, excluding the impact of currency, to increase about 4 percent vs. he previous year's first quarter. As it indicated during an April 1 webcast at the Bank of America Merrill Lynch Auto Summit, the company said it anticipates a currency headwind of about 7 percent. The increase from its earlier expectation of a 4 percent to 6 percent currency headwind is due to the U.S. dollar strengthening throughout the quarter, including against currencies such as the Euro and Canadian dollar.
Tenneco said it is expecting its tax rate in the first quarter will be similar to the rate in first quarter of 2014, which is higher than the company's full-year guidance. However, the supplier still expects a full-year tax rate between 33 percent and 36 percent.
As a result of continued growth in China, Tenneco anticipates its expense in the quarter for noncontrolling interest in the company's joint ventures will be up $6 million vs. a year ago, which is roughly in line with the noncontrolling interest expense in the fourth quarter of last year, according to the Lake Forest-based company.
Tenneco's structural growth drivers and operational performance remain strong, it said, and, as a result, the company expects solid first quarter results with a year-over-year increase in adjusted EBIT and adjusted value-add EBIT margin — continuing a two-year trend of margin improvement.
However, the earnings impact of currency headwinds in North America and Europe, and the higher year-over-year noncontrolling interest expense will impact Tenneco's first quarter adjusted net income and earnings per share, which the company expects will be slightly lower than the first quarter of 2014.
The firm will hold a conference call at 10 a.m. Eastern time on April 27 to discuss its financial results. The call dial-in and playback information is available on the company's website.
Tenneco designs, manufactures and markets clean air and ride performance products and systems for automotive, commercial truck and off-highway original equipment markets and the aftermarketunder the principal brand names Monroe, Walker, XNOx and CleviteElastomer.