Tenneco has reported second-quarter net income down 45% to US$26m, with revenue of US$4.5bn, which includes US$1.9bn from acquisitions.
Second-quarter 2019 adjusted net income was US$97m compared to US$96m, while adjusted EBITDA was US$414m versus US$233m last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Tenneco’s revenue growth outpaced industry production by nine percentage points, driven by higher light vehicle, commercial truck and off-highway revenues,” said Tenneco co-CEO, Brian Kesseler.
“We delivered sequential earnings improvement on flat revenue quarter to quarter, with disciplined cost management and effective synergy capture actions.”
Third quarter 2019:
Tenneco expects third quarter revenue in the range of US$4.3bn to US$4.4bn. The supplier expects its third quarter adjusted EBITDA to be in the range of US$390m to US$410m, including year-over-year pro forma margin improvement of around 100 basis points in both the DRiV and New Tenneco divisions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFull Year 2019:
The company updated its 2019 full year outlook and now expects:
- Total revenues in the range of US$17.6bn to US$17.8bn
- Value-add revenues in the range of $14.6bn to $14.8bn
- Value-add adjusted EBITDA margin of 10.4% to 10.6%
- Adjusted EBITDA of US$1.5bn to $1.57bn
- Interest expense of US$335m
- Cash taxes in the range of US$180m to US$200m
- Capital expenditures of US$730m
- Net debt/LTM adjusted EBITDA of 3.3x
“In the third quarter, we expect our revenues to outgrow the markets we serve,” said Tenneco co-CEO, Roger Wood.
“More importantly, we anticipate higher margins on a year-over-year basis in both divisions supported by operational performance improvements, synergy realisation and our continued focus on eliminating waste and cost throughout the business.”
