Tenneco Automotive reports strong Q2 results

By Liz White, ERJ staff

Lake Forest, Illinois-In the second quarter of 2005, Tenneco Automotive reported its 13th consecutive quarter of year-over-year revenue growth and its 14th consecutive quarter of year-over-year adjusted earnings (EBITDA) improvement.

The group, which makes ride control and emission control systems for commercial vehicles, also has a major elastomer parts business.

Tenneco set up its first European venture making rubber-to-metal bonded antivibration components, at a plant in Ermua, Spain, in late 2004. Rubber parts formed about 5.7 percent of the group's $3800 million turnover in 2004.

Tenneco Automotive had second quarter net income of $33 million, a rise of $30 million over Q2 a year ago, while EBIT (earnings before interest, taxes and minority interest) was $83 million compared with $76 million a year ago.

In the European OE sector, Tenneco had a 13 percent revenue gain to $382 million for the quarter.

Overall, the group suffered a $65 million impact in Q2 as General Motors discontinued its advanced payment programme.

Revenue for Q2 of $1180 million compared with revenue of $1113 million a year ago. Total OE revenues were up 7 percent year-over-year, "outpacing a 2 percent increase in global industry production," the group pointed out.

Revenue was driven by the company's strong position on top-selling vehicles, continued gains from new OE business in Europe and stronger Japanese OE business in North America,” Tenneco's results statement said.

"Our strategies for generating top-line growth and cash continue to be effective despite difficult and volatile market conditions," commented Mark Frissora, chairman and ceo.

Total steel cost increases in the second quarter were $35 million, which were largely offset by the company's cost reduction efforts, Tenneco commented.