Tenneco has reported a third quarter net loss of US$8m, or 17 cents a share, compared with a loss of $136m ($2.92 a share) in third quarter 2008. Adjusted net income was $3m versus less than $1 million last year.
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EBIT was $35m, up 25% over $28m a year ago. Adjusted EBIT was $46m, up 36% from $34m in third quarter 2008.
Third quarter adjustments included restructuring and related expenses of $11m and non-cash tax charges of $4m, primarily related to the impact of recording a valuation allowance against tax benefit for losses in the US and some foreign jurisdictions.
Third quarter 2009 revenue was $1.254bn, down from $1.497bn in third quarter 2008 but up from $1.106bn in second quarter 2009. The year on year revenue decrease was primarily due to lower OE production volumes in Europe, North America and Australia and declining Europe aftermarket sales, partially offset by stronger OE production volumes in China and South America and higher North America aftermarket sales.
Gross margin in the quarter was 16.8%, an improvement versus 13.3% a year ago despite higher restructuring costs in third quarter 2009.
Tenneco expects that fourth quarter industry production in North America and Europe will increase sequentially; China and India will continue to see robust light vehicle production growth year on year and the global aftermarket will remain stable year on year, following its typical seasonal pattern.
From 1 October it began restoring salaries for all salaried employees worldwide, which were reduced approximately 10% on 1 April, 2009. The temporary action delivered about $7m in savings in both the second and third quarters of 2009.
