USA: Tenneco Automotive second quarter profit up 26% - report
Shock absorber and exhaust system maker Tenneco Automotive on Tuesday said quarterly earnings rose by 26%, above expectations, Reuters reported.
Tenneco second-quarter net income rose to $US24 million, or 58 cents a share, from $19 million, or 45 cents a share, boosted by the strong euro and higher sales of emission-control products in Europe, Reuters said.
Three analysts polled by Reuters Research, a unit of Reuters Group Plc, had an average estimate of 5 cents a share. Their estimates had ranged from 3 cents to 6 cents a share.
Revenue rose to $998 million from $948 million as the weaker dollar boosted results, Reuters added.
According to the news agency, Tenneco said that, without the impact of favourable currency translation, revenue would have declined to $922 million, hurt by weaker sales of replacement parts.
In Europe, sales to automotive manufacturers increased, while North American revenue declined due to weaker vehicle production and softer sales in the aftermarket, Tenneco said, according to Reuters.
According to the report, Tenneco said increased working capital and tax settlement costs contributed to negative cash flow of $35 million in the period, but it said cash use is typically higher in the second quarter ahead of the spring and summer selling seasons for the aftermarket.