Tenneco Automotive reported a quarterly net loss of $99 million in the fourth quarter of 2001, or $2.53 per diluted share, compared with a net loss of $63 million, or $1.74 per diluted share, in the previous year.
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Excluding special items, the company’s net loss was $8 million, or 19 cents per diluted share, compared with a net loss of $21 million, or 56 cents per diluted share, in the year-earlier quarter.
Fourth quarter revenue fell 10% to $758 million from $843 million the year before.
The company intends to close eight facilities, consolidate or rearrange and improve the workflow in 20 others, and move production assets among some of its plants. These activities are designed to reduce existing overcapacity, as well as improve standardisation and efficiency in its global manufacturing, distribution and logistics operations.
Tenneco expects to substantially complete these actions by the end of the first quarter of 2003, and anticipates they will generate $11 million in savings during 2002, and $30 million in annualised savings beginning in 2004.
Up to 900 workers in Europe and North America would be affected, the company said. Tenneco employs 21,600 workers worldwide.
“Our strengthening aftermarket operations in both North America and Europe helped improve our operating performance and narrow the profitability gap in the fourth quarter,” said Mark P. Frissora, chairman and CEO of Tenneco Automotive. “This is particularly significant given the year-over-year volume declines seen across the industry.”
For the full year 2001, Tenneco Automotive reported a net loss of $130 million, or $3.43 per share, compared with a net loss of $41 million, or $1.18 per share in 2000. Excluding charges and other items, the company posted a net loss of $18 million or 48-cents per share in 2001, versus income of $4 million or 10-cents per share in 2000.
Revenues for 2001 were off five percent to $3.36 billion. On an adjusted basis, 2001 revenues were off 10%.
“Current industry and global economic trends point to yet another challenging year ahead,” Frissora said. “However, we intend to counter these conditions by remaining aggressively vigilant on the cost side of the business and continuing to focus on cash flow. We will also look to offset anticipated volume declines by pursuing new business in our aftermarket business, as well as by continuing to introduce advanced technology solutions for our OE customers worldwide.”
