Tenneco Announces Preliminary Fourth Quarter and Full-Year 2018 Revenue

Expects continued growth in 2019 with constant dollar revenue growing
4-5%
Outpacing forecasted light vehicle production by 6-7%
-
Higher fourth quarter and full-year revenue, including strong growth
with commercial truck and off-highway customers - Completed acquisition of Federal-Mogul on October 1, 2018
LAKE FOREST, Ill.–(BUSINESS WIRE)–Tenneco (NYSE: TEN) today announced preliminary revenue for the fourth
quarter and full year 2018 and provided 2019 revenue guidance. The
company also announced that in the near future it will reschedule the
date of its previously announced earnings release and teleconference for
the fourth quarter and full year 2018 to allow it sufficient time to
complete the first year-end closing process for the combined company.
Total revenue in the fourth quarter was $4.3 billion, up 79%
year-over-year, driven mainly by the completion of the Federal-Mogul
acquisition on October 1, 2018. Excluding the acquisition and on a
constant currency basis, revenue increased 4%, outpacing light vehicle
industry production* by 10 percentage points. The outperformance was
driven by volume and content growth with commercial truck and
off-highway as well as light vehicle customers. Value-add revenue was
$3.6 billion, up 100% compared to last year including Federal-Mogul
results.
For the full year, total revenue was $11.8 billion, including
Federal-Mogul revenues since October 1. Excluding the acquisition and
the impact of currency exchange rates, Tenneco delivered full-year
organic revenue growth of 6%, outpacing industry production* by 7
percentage points, driven by 24% growth in commercial truck and
off-highway and 5% light vehicle growth versus last year. Value-add
revenue was $9.3 billion, up 31% compared to last year including
Federal-Mogul results. The company anticipates that 2018 adjusted
earnings will be near the low end of the guidance range previously
provided for the fourth quarter.
During the year-end closing process for the newly combined business, a
difference was identified through the alignment of the combined
company’s accounting practices. This practice relates to determining the
appropriate capitalization and/or classification of certain expenses
within the income statement. In this respect, the company is taking more
time to complete its first combined year-end financial statements. The
company currently believes that any changes related to this practice
will not be material to earnings or cash flow in any reporting period;
however, the cumulative effect may require some revision to prior period
results.
“Tenneco’s organic growth continued in the fourth quarter, outpacing
industry production by ten percentage points, supported by the strength
of our diverse business profile in terms of products, geographic regions
and end-markets served,” said Brian Kesseler, Tenneco co-CEO. “We closed
the Federal-Mogul transaction, accelerating the transformation of the
combined businesses into two purpose-built, industry leading companies,
and our acquisition of Öhlins Racing will fuel the growth of advanced
suspension technology and enhance our portfolio in broader mobility
markets.”
On a pro forma basis, the company expects 2019 constant dollar revenue
growth in the range of 4% to 5%, outpacing light vehicle industry
production* by 6 to 7 percentage points. Global light vehicle
production* is forecast to be down 2% in 2019.
“Our global teams are executing well against the integration plans,”
said Roger Wood, Tenneco co-CEO. “In 2019, we expect continued revenue
growth that outpaces global industry production, powered by diverse and
sustainable growth drivers across our business.”
*Source: IHS Markit February 2019 global light vehicle production
forecast and Tenneco estimates.
Attachment
Reconciliation of GAAP Revenue to Non-GAAP Revenue Measures – 3 Months
Reconciliation
of GAAP Revenue to Non-GAAP Revenue Measures – 12 Months
Reconciliation
of GAAP Revenue to Non-GAAP Revenue Measures – 3 Months and 12 Months
Reconciliation
of GAAP Revenue to Non-GAAP Revenue Measures – Original Equipment and
Aftermarket Revenue – 3 Months and 12 Months
Reconciliation of GAAP
Revenue to Pro Forma Revenue Measures – 2017 and 2018
ANNUAL MEETING
The Tenneco Board of Directors has scheduled the corporation’s annual
meeting of shareholders for Wednesday, May 15, 2019 at 1:00 p.m. ET. The
meeting will be held at the Detroit Foundation Hotel, 250 W Larned
Street, Detroit, Michigan. The record date for shareholders eligible to
vote at the meeting is March 18, 2019.
About Tenneco
Headquartered in Lake Forest, Illinois, Tenneco is one of the world’s
leading designers, manufacturers and marketers of Aftermarket, Ride
Performance, Clean Air and Powertrain products and technology solutions
for diversified markets, including light vehicle, commercial truck,
off-highway, industrial and the aftermarket, with 2018 revenues of $11.8
billion and approximately 81,000 employees worldwide. On October 1,
2018, Tenneco completed the acquisition of Federal-Mogul, a leading
global supplier to original equipment manufacturers and the aftermarket.
Additionally, the company expects to separate its businesses to form two
new, independent companies, an Aftermarket and Ride Performance company
as well as a new Powertrain Technology company, in the second half of
2019.
About DRiV™ – the future Aftermarket and Ride Performance Company
Following the separation, DRiV will be one of the largest global
multi-line, multi-brand aftermarket companies, and one of the largest
global OE ride performance and braking companies. DRiV’s principal
product brands will feature Monroe®, Öhlins® Walker®,
Clevite®Elastomers, MOOG®, Fel-Pro®, Wagner®, Ferodo®, Champion® and
others. DRiV would have 2018 pro-forma revenues of $6.4 billion, with
54% of those revenues from aftermarket and 46% from original equipment
customers.
About the new Tenneco – the future Powertrain Technology Company
Following the separation, the new Tenneco will be one of the world’s
largest pure-play powertrain companies serving OE markets worldwide with
engineered solutions addressing fuel economy, power output, and criteria
pollution requirements for gasoline, diesel and electrified powertrains.
The new Tenneco would have 2018 pro-forma revenues of $11.4 billion,
serving light vehicle, commercial truck, off-highway and industrial
markets.
Revenue estimates and other forecasted information in this release
are based on OE manufacturers’ programs that have been formally awarded
to the company; programs where Tenneco is highly confident that it will
be awarded business based on informal customer indications consistent
with past practices; and Tenneco’s status as supplier for the existing
program and its relationship with the customer. This information
is also based on anticipated vehicle production levels and pricing,
including precious metals pricing and the impact of material cost
changes. Unless otherwise indicated, our methodology does not attempt to
forecast currency fluctuations, and accordingly, reflects constant
currency.
This press release contains forward-looking statements regarding the
company’s anticipated 2018 earnings. These forward-looking
statements are based on the current expectations of the company
(including its subsidiaries). Because these statements involve
risks and uncertainties, actual results may differ materially from the
expectations expressed in the forward-looking statements. Important
factors that could cause actual results to differ materially from the
expectations reflected in the forward-looking statements include the
final results of the Company’s evaluation of the accounting issues
described herein. In addition, investors should consider the risk
factors and uncertainties detailed from time to time in the company’s
SEC filings, including but not limited to its annual report on Form 10-K
for the year ended December 31, 2017, and its quarterly report on Form
10-Q for the quarter ended September 30, 2018.
In addition, this press release contains forward-looking statements.
The words “may,” “will,” “believe,” “should,” “could,” “plan,” “expect,”
“anticipate,” “estimate,” and similar expressions (and variations
thereof), identify these forward-looking statements. These
forward-looking statements are based on the current expectations of the
company (including its subsidiaries). Because these statements
involve risks and uncertainties, actual results may differ materially
from the expectations expressed in the forward-looking statements.
Important factors that could cause actual results to differ materially
from the expectations reflected in the forward-looking statements
include:
- general economic, business and market conditions;
-
our ability to source and procure needed materials, components and
other products and services in accordance with customer demand and at
competitive prices; -
the cost and outcome of existing and any future claims, legal
proceedings or investigations, including, but not limited to, any of
the foregoing arising in connection with the ongoing global antitrust
investigation, product performance, product safety or intellectual
property rights; -
changes in consumer demand, prices and our ability to have our
products included on top selling vehicles, including any shifts in
consumer preferences away from historically higher margin products for
our customers and us, to other lower margin vehicles, for which we may
or may not have supply arrangements, and the cyclical nature of the
global vehicle industry, including the performance of the global
aftermarket sector and the impact of vehicle parts’ longer product
lives; -
changes in consumer demand for our OE or aftermarket products, or
changes in automotive and commercial vehicle manufacturers’ production
rates and their actual and forecasted requirements for our products,
due to difficult economic conditions and/or regulatory or legal
changes affecting internal combustion engines and/or aftermarket
products; -
our dependence on certain large customers, including the loss of
any of our large original equipment manufacturer (“OE”) customers (on
whom we depend for a substantial portion of our revenues), or the loss
of market shares by these customers if we are unable to achieve
increased sales to other OE customers or any change in customer demand
due to delays in the adoption or enforcement of worldwide emissions
regulations; -
new technologies that reduce the demand for certain of our products
or otherwise render them obsolete; -
our ability to introduce new products and technologies that satisfy
customers’ needs in a timely fashion; -
the overall highly competitive nature of the automotive and
commercial vehicle parts industries, and any resultant inability to
realize the sales represented by our awarded book of business (which
is based on anticipated pricing and volumes over the life of the
applicable program); -
changes in capital availability or costs, including increases in
our cost of borrowing (i.e., interest rate increases), the amount of
our debt, our ability to access capital markets at favorable rates,
and the credit ratings of our debt; -
our ability to comply with the covenants contained in our debt
instruments; - our working capital requirements;
-
our ability to successfully execute cash management and other cost
reduction plans, and to realize the anticipated benefits from these
plans; -
risks inherent in operating a multi-national company, including
economic conditions, such as currency exchange and inflation rates,
and political conditions in the countries where we operate or sell our
products, adverse changes in trade agreements, tariffs, immigration
policies, political stability, and tax and other laws, and potential
disruptions of production and supply; - increasing competition from lower cost, private-label products;
- damage to the reputation of one or more of our leading brands;
-
the impact of improvements in automotive parts on aftermarket
demand for some of our products; -
industrywide strikes, labor disruptions at our facilities or any
labor or other economic disruptions at any of our significant
customers or suppliers or any of our customers’ other suppliers; -
developments relating to our intellectual property, including our
ability to changes in technology; -
costs related to product warranties and other customer satisfaction
actions; -
the failure or breach of our information technology systems,
including the consequences of any misappropriation, exposure or
corruption of sensitive information stored on such systems and the
interruption to our business that such failure or breach may cause; -
the impact of consolidation among vehicle parts suppliers and
customers on our ability to compete in the highly competitive
automotive and commercial vehicle supplier industry; -
changes in distribution channels or competitive conditions in the
markets and countries where we operate; - the evolution towards autonomous vehicles and car and ride sharing;
- customer acceptance of new products;
-
our ability to successfully integrate, and benefit from, any
acquisitions that we complete; -
our ability to effectively manage our joint ventures and other
third-party relationships; -
the potential impairment in the carrying value of our long-lived
assets and goodwill or our deferred tax assets; -
the negative impact of fuel price volatility on transportation and
logistics costs, raw material costs, discretionary purchases of
vehicles or aftermarket products and demand for off-highway equipment; -
increases in the costs of raw materials or components, including
our ability to successfully reduce the impact of any such cost
increases through materials substitutions, cost reduction initiatives,
customer recovery and other methods; -
changes by the Financial Accounting Standards Board or the
Securities and Exchange Commission of authoritative generally accepted
accounting principles or policies; -
changes in accounting estimates and assumptions, including changes
based on additional information; -
any changes by the International Organization for Standardization
(ISO) or other such committees in their certification protocols for
processes and products, which may have the effect of delaying or
hindering our ability to bring new products to market; -
the impact of the extensive, increasing and changing laws and
regulations to which we are subject, including environmental laws and
regulations, which may result in our incurrence of environmental
liabilities in excess of the amount reserved or increased costs or
loss of revenues relating to products subject to changing regulation; - potential volatility in our effective tax rate;
-
disasters, such as fires, earthquakes and flooding, and any
resultant disruptions in the supply or production of goods or services
to us or by us, in demand by our customers or in the operation of our
system, disaster recovery capabilities or business continuity
capabilities; -
acts of war and/or terrorism, as well as actions taken or to be
taken by the United States and other governments as a result of
further acts or threats of terrorism, and the impact of these acts on
economic, financial and social conditions in the countries where we
operate; - pension obligations and other postretirement benefits;
- our hedging activities to address commodity price fluctuations; and
-
the timing and occurrence (or non-occurrence) of other
transactions, events and circumstances which may be beyond our control.
In addition, important factors related to the acquisition of
Federal-Mogul LLC (“Federal-Mogul”) and the planned separation of our
company into a powertrain technology company and an aftermarket and ride
performance company that could cause actual results to differ materially
from the expectations reflected in the forward-looking statements,
including:
-
the risk that the benefits of the acquisition of Federal-Mogul,
including synergies, may not be fully realized or may take longer to
realize than expected; -
the risk that the acquisition of Federal-Mogul may not advance our
business strategy; -
the risk that we may experience difficulty integrating or
separating employees or operations; -
the risk that the transaction may have an adverse impact on
existing arrangements with us, including those related to transition,
manufacturing and supply services and tax matters, our ability to
retain and hire key personnel or our ability to maintain relationships
with customers, suppliers or other business partners; -
the risk that the company may not complete a separation of its
powertrain technology business and its aftermarket and ride
performance business (or achieve some or all of the anticipated
benefits of such a separation); -
the risk that the combined company and each separate company
following the spin-off will underperform relative to our expectations; -
the ongoing transaction costs and risk that we may incur greater
costs following the spin-off; and -
the risk that the spin-off is determined to be a taxable
transaction.
The company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
press release. Additional information regarding these risk factors and
uncertainties is detailed from time to time in the company’s SEC
filings, including but not limited to its annual report on Form 10-K for
the year ended December 31, 2017, and its quarterly report on Form 10-Q
for the quarter ended September 30, 2018.
TENNECO INC. | |||||||||||||||||
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2) |
|||||||||||||||||
Unaudited |
|||||||||||||||||
(Millions) | |||||||||||||||||
Q4 2018 | |||||||||||||||||
Currency | Value-add | ||||||||||||||||
Impact on | Revenues | ||||||||||||||||
Substrate | Value-add | Value-add | excluding | ||||||||||||||
Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
Clean Air | $ | 1,655 | $ | 631 | $ | 1,024 | $ | (34 | ) | $ | 1,058 | ||||||
Ride Performance | 469 | – | 469 | (24 | ) | 493 | |||||||||||
Aftermarket | 258 | – | 258 | (15 | ) | 273 | |||||||||||
Powertrain | 1,112 | – | 1,112 | – | 1,112 | ||||||||||||
Motorparts | 774 | – | 774 | – | 774 | ||||||||||||
Total Tenneco Inc. | $ | 4,268 | $ | 631 | $ | 3,637 | $ | (73 | ) | $ | 3,710 | ||||||
Q4 2017 | |||||||||||||||||
Currency | Value-add | ||||||||||||||||
Impact on | Revenues | ||||||||||||||||
Substrate | Value-add | Value-add | excluding | ||||||||||||||
Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
Clean Air | $ | 1,627 | $ | 577 | $ | 1,050 | $ | – | $ | 1,050 | |||||||
Ride Performance | 480 | – | 480 | – | 480 | ||||||||||||
Aftermarket | 284 | – | 284 | – | 284 | ||||||||||||
Total Tenneco Inc. | $ | 2,391 | $ | 577 | $ | 1,814 | $ | – | $ | 1,814 | |||||||
(1) U.S. Generally Accepted Accounting Principles. | |||||||||||||||||
(2) Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues. |
TENNECO INC. | |||||||||||||||||
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2) |
|||||||||||||||||
Unaudited |
|||||||||||||||||
(Millions) | |||||||||||||||||
YTD 2018 | |||||||||||||||||
Currency | Value-add | ||||||||||||||||
Impact on | Revenues | ||||||||||||||||
Substrate | Value-add | Value-add | excluding | ||||||||||||||
Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
Clean Air | $ | 6,707 | $ | 2,500 | $ | 4,207 | $ | 31 | $ | 4,176 | |||||||
Ride Performance | 1,949 | – | 1,949 | (4 | ) | 1,953 | |||||||||||
Aftermarket | 1,209 | – | 1,209 | (29 | ) | 1,238 | |||||||||||
Powertrain | 1,112 | – | 1,112 | – | 1,112 | ||||||||||||
Motorparts | 774 | – | 774 | – | 774 | ||||||||||||
Total Tenneco Inc. | $ | 11,751 | $ | 2,500 | $ | 9,251 | $ | (2 | ) | $ | 9,253 | ||||||
YTD 2017 | |||||||||||||||||
Currency | Value-add | ||||||||||||||||
Impact on | Revenues | ||||||||||||||||
Substrate | Value-add | Value-add | excluding | ||||||||||||||
Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
Clean Air | $ | 6,216 | $ | 2,187 | $ | 4,029 | $ | – | $ | 4,029 | |||||||
Ride Performance | 1,807 | – | 1,807 | – | 1,807 | ||||||||||||
Aftermarket | 1,251 | – | 1,251 | – | 1,251 | ||||||||||||
Total Tenneco Inc. | $ | 9,274 | $ | 2,187 | $ | 7,087 | $ | – | $ | 7,087 | |||||||
(1) U.S. Generally Accepted Accounting Principles. | |||||||||||||||||
(2) Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues. |
TENNECO INC. | |||||||||||||||||
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES |
|||||||||||||||||
Unaudited |
|||||||||||||||||
(Millions except percents) | |||||||||||||||||
Q4 2018 vs. Q4 2017 $ Change and % Change Increase (Decrease) | |||||||||||||||||
Value-add | |||||||||||||||||
Adjusted | |||||||||||||||||
Revenues | |||||||||||||||||
Excluding | |||||||||||||||||
Revenues | % Change | Currency | % Change | ||||||||||||||
Clean Air | $ | 28 | 2 | % | $ | 8 | 1 | % | |||||||||
Ride Performance | (11 | ) | (2 | %) | 13 | 3 | % | ||||||||||
Aftermarket | (26 | ) | (9 | %) | (11 | ) | (4 | %) | |||||||||
Powertrain | 1,112 | NM | 1,112 | NM | |||||||||||||
Motorparts | 774 | NM | 774 | NM | |||||||||||||
Total Tenneco Inc. | $ | 1,877 | 79 | % | $ | 1,896 | 105 | % | |||||||||
YTD Q4 2018 vs. YTD Q4 2017 $ Change and % Change Increase (Decrease) | |||||||||||||||||
Value-add | |||||||||||||||||
Revenues | |||||||||||||||||
Excluding | |||||||||||||||||
Revenues | % Change | Currency | % Change | ||||||||||||||
Clean Air | $ | 491 | 8 | % | $ | 147 | 4 | % | |||||||||
Ride Performance | 142 | 8 | % | 146 | 8 | % | |||||||||||
Aftermarket | (42 | ) | (3 | %) | (13 | ) | (1 | %) | |||||||||
Powertrain | 1,112 | NM | 1,112 | NM | |||||||||||||
Motorparts | 774 | NM | 774 | NM | |||||||||||||
Total Tenneco Inc. | $ | 2,477 | 27 | % | $ | 2,166 | 31 | % | |||||||||
(1) U.S. Generally Accepted Accounting Principles. |
TENNECO INC. | |||||||||||||||||
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2) |
|||||||||||||||||
Unaudited |
|||||||||||||||||
(Millions) | |||||||||||||||||
Q4 2018 | |||||||||||||||||
Value-add | |||||||||||||||||
Revenues | Substrate Sales | Revenues | |||||||||||||||
Excluding | Excluding | Excluding | |||||||||||||||
Revenues | Currency | Currency | Currency | Currency | |||||||||||||
Original equipment light vehicle revenues | $ | 2,658 | $ | (66 | ) | $ | 2,724 | $ | 549 | $ | 2,175 | ||||||
Original equipment commercial truck, off-highway, industrial and other revenues |
811 | (14 | ) | 825 | 104 | 721 | |||||||||||
Aftermarket revenues | 799 | (15 | ) | 814 | – | 814 | |||||||||||
Net sales and operating revenues | $ | 4,268 | $ | (95 | ) | $ | 4,363 | $ | 653 | $ | 3,710 | ||||||
Q4 2017 | |||||||||||||||||
Value-add | |||||||||||||||||
Revenues | Substrate Sales | Revenues | |||||||||||||||
Excluding | Excluding | Excluding | |||||||||||||||
Revenues | Currency | Currency | Currency | Currency | |||||||||||||
Original equipment light vehicle revenues | $ | 1,793 | $ | – | $ | 1,793 | $ | 478 | $ | 1,315 | |||||||
Original equipment commercial truck, off-highway, industrial and other revenues |
314 | – | 314 | 99 | 215 | ||||||||||||
Aftermarket revenues | 284 | – | 284 | – | 284 | ||||||||||||
Net sales and operating revenues | $ | 2,391 | $ | – | $ | 2,391 | $ | 577 | $ | 1,814 | |||||||
YTD 2018 | |||||||||||||||||
Value-add | |||||||||||||||||
Revenues | Substrate Sales | Revenues | |||||||||||||||
Excluding | Excluding | Excluding | |||||||||||||||
Revenues | Currency | Currency | Currency | Currency | |||||||||||||
Original equipment light vehicle revenues | $ | 8,115 | $ | 39 | $ | 8,076 | $ | 2,078 | $ | 5,998 | |||||||
Original equipment commercial truck, off-highway, industrial and other revenues |
1,886 | 2 | 1,884 | 408 | 1,476 | ||||||||||||
Aftermarket revenues | 1,750 | (29 | ) | 1,779 | – | 1,779 | |||||||||||
Net sales and operating revenues | $ | 11,751 | $ | 12 | $ | 11,739 | $ | 2,486 | $ | 9,253 | |||||||
YTD 2017 | |||||||||||||||||
Value-add | |||||||||||||||||
Revenues | Substrate Sales | Revenues | |||||||||||||||
Excluding | Excluding | Excluding | |||||||||||||||
Revenues | Currency | Currency | Currency | Currency | |||||||||||||
Original equipment light vehicle revenues | $ | 6,880 | $ | – | $ | 6,880 | $ | 1,854 | $ | 5,026 | |||||||
Original equipment commercial truck, off-highway, industrial and other revenues |
1,143 | – | 1,143 | 333 | 810 | ||||||||||||
Aftermarket revenues | 1,251 | – | 1,251 | – | 1,251 | ||||||||||||
Net sales and operating revenues | $ | 9,274 | $ | – | $ | 9,274 | $ | 2,187 | $ | 7,087 | |||||||
(1) U.S. Generally Accepted Accounting Principles. | |||||||||||||||||
(2) Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues. |
Contacts
Investor inquiries:
Linae Golla
847-482-5162
lgolla@tenneco.com
Media
inquiries:
Bill Dawson
847-482-5807
bdawson@tenneco.com