Tenneco Inc. (NYSE: TEN) today provided a business update regarding COVID-19.
Given the uncertainty driven by the unpredictability of the COVID-19 pandemic and associated negative impact on demand, the Company announced that it is withdrawing its first quarter and full year financial guidance issued on February 20, 2020. Tenneco will provide additional updates during its first quarter 2020 earnings call.
Tenneco also announced that it has temporarily suspended or reduced certain operations across the Americas, EMEA and most of the APAC regions in response to governmental requirements and production suspensions taken by many of its customers. Where the Company is continuing operations, Tenneco has taken significant measures to protect the health and safety of its team members in accordance with recommendations from health officials. In particular, the Company is taking precautions at each location to implement rigorous cleaning and sanitation protocols; to perform wellness checks on employees; and to implement changes within the plant to comply with social distancing requirements.
Industry demand estimates for the remainder of 2020 continue to be extremely fluid, however, all current estimates point to the second quarter as the most severely impacted in the end markets Tenneco serves. With the continuing evolution of the COVID-19 response actions and their effects on customer demand, the Company is implementing incremental cost reductions and actions to further optimize cash performance.
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