Tenneco Automotive said that its first quarter 2002 performance “improved significantly” compared with a year ago with a reported net loss of $US2 million, or five cents per share, for the first quarter of 2002, compared with a net loss of $31 million, or 84 cents per share, in the first quarter of 2001.
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The company generated $14 million in positive cash flow, before financing activities, which was a $73 million cash flow improvement compared with first quarter 2001. The company also reduced its net debt by $11 million at quarter-end.
“We continue to make steady progress on our key objectives of improving gross margins, reducing working capital, and operating more efficiently, which is reflected in our improving performance,” said chairman and CEO Mark P. Frissora.
The company reported revenue of $809 million for the quarter, down six percent on Q1, 2001’s $864 million. EBITDA for the quarter was $61 million, compared with $43 million the previous year, a 42 percent improvement. Year-over-year, working capital performance improved by $184 million and capital spending was $2 million lower.
The first quarter 2002 results include a pre-tax non-accruable restructuring expense of $1 million (one cent per share), pre-tax charges associated with the company’s renegotiation of its senior debt agreements of $2 million (three cents per share) and income from a tax benefit of $4 million (10 cents per share).
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By GlobalDataIn addition, the company incurred higher incremental aftermarket changeover costs of $5 million (seven cents per share) in the first quarter of 2002 related to acquiring significant new aftermarket business.
The first quarter 2001 results included pre-tax restructuring charges of $12 million (23 cents per share), pre-tax environmental charges of $6 million (12 cents per share) and $2 million in charges associated with the company’s renegotiation of its senior debt agreements (five cents per share).
