Tenneco Q3 net income rises with one-time gain
Sherrill: “Strong volumes on key platforms and the launch of new light vehicle programs fueled our top-line growth.”
Ride-control and emissions control supplier Tenneco Inc. today reported third-quarter net income more than tripled, driven mostly by a $105 million foreign tax credit adjustment.
Tenneco, based in Chicago, reported net income of $180 million on the quarter, up from $52 million in the year-earlier period.
Total revenue was $2.1 billion in the quarter, a gain of 4 percent from 2015. Tenneco attributed the rise to strong light-vehicle revenue growth in both its clean air and ride performance divisions offsetting declines in commercial truck and off-highway revenue.
“We delivered another record quarter, driven by the strength of our light vehicle business globally where we have an outstanding platform position across a broad base of customers,” Tenneco CEO Gregg Sherrill said in a statement. “Strong volumes on key platforms and the launch of new light vehicle programs fueled our top-line growth.”
Following the earnings report, Tenneco shares were down 1.7 percent to $54.27 as of 11:51 a.m.
Revenue at Tenneco’s clean air division rose 3.7 percent from the year earlier period to $1.5 billion. Gains in the Asia Pacific region and in Europe, South America and India helped to make up for a slight decline in North American revenue to $716 million.
Ride performance division revenue climbed 3.1 percent to $636 million. A 7.3 percent decline in the division’s North American sales was offset by a 41 percent gain in the Asia Pacific region and a 9.3 percent rise in revenue in the Europe, South America and India regions.
Tenneco said it estimates 3 percent revenue growth in the fourth quarter and 6 percent growth on the year.
The supplier is No. 42 on Automotive News’ list of the top global suppliers, with sales to automakers of $6 billion in 2015.