Tenneco swung to a fourth-quarter profit on steep prior-year charges as the autoparts maker also benefited from cost cutting and reported higher sales for the first time in nearly two years.
Tenneco’s improved results, and its decision late last year to begin reversing wage cuts to salaried workers, indicated a brightening outlook for the company, Dow Jones reported.
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Tenneco, which makes shock absorbers, suspensions and manifolds, posted a profit of US$17m, or 32 cents a share, compared with a year-earlier loss of $298m, or $6.40 a share. The latest quarter included a net 19 cents in gains.
Net sales improved 9.4% to $1.32bn, or rose 5% excluding currency changes.
Analysts surveyed by Thomson Reuters expected earnings of 13 cents on sales of $1.32bn.
Gross margin jumped to 17.4% from 12.6%, helped by restructuring efforts.
Tenneco said it expects global original equipment revenues of about $4.4bn in 2010 and $5.7bn in 2011, up from the $3.6bn it posted during 2009.
“Although we are just in the early stages of a global industry recovery and 2010 production forecasts for North America and Europe remain low relative to historical levels, Tenneco is well-positioned to deliver revenue and earnings growth this year as we launch new business, take advantage of volume increases and continue to benefit from permanent cost reductions and operational improvements,” said chairman and chief executive Gregg Sherrill.
