US: Tenneco’s net income up 16.67% in Q1/2015
Tenneco's net sales and operating revenues for the first quarter of 2015 were down 3.39% to US$2.02bn from $2.09bn in the year ago period.
Its earnings before interest expense and income taxes were up 6.19% to $120m compared with $113m in the year ago period. The company's net income for the period was up 16.67% to $63m from $54m.
Tenneco expects growth will continue to be driven by well-established structural growth drivers which include:
- Increasing global light vehicle industry production;
- Emissions regulations which require new content to meet more stringent requirements;
- Increased demand for Monroe Intelligent Suspension technologies;
- The growing global car parc, which the company serves with industry-leading aftermarket brands.
In the second quarter, global light vehicle industry production is expected to increase 3% in the regions where Tenneco operates. The company is well-positioned to leverage higher light vehicle volumes with its strong platform position with leading global OEMs. Tenneco also expects continued regulatory-driven, incremental content growth on commercial truck and off-highway programmes to meet global emissions requirements, and a solid contribution from its global aftermarket business.
Excluding currency, Tenneco anticipates total revenue growth of about 5% in the second quarter. Based on current exchange rates, the company anticipates a currency headwind in the second quarter of approximately 9%.
The company also reaffirms its full-year revenue guidance for total revenue growth of 5% to 8%, excluding currency.
"Tenneco's growth opportunities are outstanding, supported by strong structural drivers and exceptional balance in terms of geography, end-markets, customers and products," said Sherrill. "We remain focused on our organic growth opportunities and cost leadership initiatives to drive earnings and improve profitability."