Tenneco has reported a second-quarter net loss of US$350m, while revenue fell from US$4.5bn to US$2.6bn.
“The business impact from the pandemic in the quarter was severe for both the industry and Tenneco,” said Tenneco CEO, Brian Kesseler.
“The response from the Tenneco team around the world is a testament to their dedication and resilience.”
“Our production facilities safely returned to operations throughout the quarter following local and Federal health guidelines. Our thoughts remain with our team members, families and communities who have been impacted by COVID-19 and we continually work to keep them healthy, both on the job and outside the workplace.”
“The Tenneco team’s swift and effective actions to reduce costs and preserve liquidity enabled the company to respond well in a very challenging environment. Our global footprint and the diverse end markets we serve allowed us to offset a portion of the light vehicle production demand decline in the quarter.
“Earnings and cash performance were driven by effectively flexing our cost structure and working capital with both structural and temporary actions.”
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Due to the continued uncertainty of the pandemic’s effect on the global markets, the supplier is not providing financial guidance for the full year.
Tenneco does expect third quarter 2020 revenue to improve substantially compared to the second quarter 2020, but lower than third quarter 2019 results.
The company also expects the benefit of incremental structural cost savings and continued capital management will drive sequential improvement in cash from operations through the second half of 2020.
“Our continuing focus on structural cost reductions and accelerating cash generation will build momentum through the remainder of this year and into 2021,” added Kesseler.
“The priority we have placed on debt reduction and targeted growth investments will create a stronger Tenneco and deliver improved shareholder value.”