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Tenneco reports first quarter 2019 results

Segment reporting changed to align with operating structure of future companies

Tenneco Inc. (NYSE: TEN) reported first quarter 2019 revenue▲ of $4.5 billion, a 74% increase versus $2.6 billion a year ago. On a constant currency basis, organic revenue grew 4% and net revenue growth from acquisitions and divestitures was 75%, while the impact of exchange rates was negative 5%. On a constant currency pro forma basis, total revenue increased 1% versus last year, while light vehicle industry production declined 7%. Value add revenue for the first quarter was $ 3.8 billion.

The company reported a net loss for first quarter 2019 of $117 million, or a loss of $1.44 per diluted share. First quarter 2018 net income▲ was $60 million, or $1.17 per diluted share. First quarter 2019 adjusted net income was $42 million, or 52-cents per diluted share, compared with $83 million, or $1.62 per diluted share last year. ▲

First quarter EBIT (earnings before interest, taxes and noncontrolling interests) was $(24) million, versus $122 million last year. EBIT as a percent of revenue was -0.5% versus 4.7% last year.

First quarter adjusted EBITDA was $327 million versus $212 million last year. Adjusted EBITDA as a percent of value-add revenue was 8.7% compared with 11.0% a year ago. In addition to the inclusion of the acquired Federal-Mogul business, the comparison includes the unfavorable mix impact on earnings of weaker aftermarket and China OE volumes and related operational inefficiencies.

Cash used by operations was $150 million, excluding proceeds from the deferred purchase price of factored receivables of $60 million. Capital investments in the quarter were $173 million. During the quarter, the company returned $20 million to shareholders through a dividend payment of 25-cents per common share.

“Tenneco delivered organic revenue growth that outpaced industry production by eight percentage points, driven by higher light vehicle, commercial truck and off-highway revenues,” said Roger Wood, co-CEO Tenneco. “While lower aftermarket sales and China volume declines impacted earnings in the quarter, we are confident in the strength of our growth drivers and actions underway to reduce cost and improve cash generation.

Please click here to view the full press release.

SOURCE: Tenneco

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