Tenneco has posted a first-quarter net loss of USD$49m, compared with a profit of USD$6m last year.
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As vehicle production in the industry collapsed, Q1 revenue fell 38% on last year to USD967m
“This was a very challenging quarter as production volumes continued to decline to extremely low levels with no region of the world unaffected,” said Gregg Sherrill, chairman and CEO, Tenneco.
“However, restructuring actions and our employees’ concerted efforts to aggressively reduce costs and generate cash were instrumental in helping to offset the impact of this severe industry downturn.”
In North America, OE revenue was USD$333 million, down 39% year-over-year, driven by lower OE production volumes. In Europe, OE revenue was USD$278 million, a 50% decline on last year, again driven by much lower vehicle production.
Tenneco reiterated that cash generation and strict cost management remain its top near-term priorities in response to the global economic crisis.
“As an organisation, we are committed to taking the actions necessary to withstand this crisis and keep the company positioned and prepared to capitalize on an eventual recovery,” Sherrill said.
“Despite current conditions, we continue to make targeted investments in technologies and the capabilities required to support upcoming customer launches, including regulatory driven emission control business for light and commercial vehicles that begin production as early as the end of 2009.”
