LAKE FOREST, Ill. (Oct. 11, 2007) — Tenneco Inc. said new aftermarket ride control business contracts it has won in the third quarter will give it $11 million in incremental revenue.
The new business, previously serviced by a competitor, is with an affiliate of one of Tenneco's largest customers in North America. Tenneco said it also snagged business with four new customers for ride and/or emission control products. The company did not name the new customers.
The Lake Forest-based company said it anticipates taking a $5 million charge in the third quarter for customer changeover costs — expenses incurred to replace competitors' products in retail outlets with Tenneco products.
The Monroe ride control products will be produced primarily at Tenneco's facility in Paragould, Ark., and the Walker exhaust products at its Harrisonburg, Va., plant.