LAKE FOREST, Ill. (May 1, 2009)—Worldwide declines in original equipment production and a stronger U.S. dollar caused a drop in sales and earnings in the first quarter for Tenneco Inc.
Tenneco reported a net loss of $49 million, compared with a net income of $6 million in the year-ago quarter, as sales plunged 38 percent to $967 million.
The company's EBITDA plummeted 58.5 percent to $39 million, compared with $94 million in the first quarter of 2008.
“This was a very challenging quarter as production volumes continued to decline to extremely low levels with no region of the world unaffected,” said Chairman and CEO Gregg Sherrill. “However, restructuring actions and our employees' concerted efforts to aggressively reduce costs and generate cash were instrumental in helping to offset the impact of this severe industry downturn.”
Tenneco said it temporarily lowered its salary costs for salaried employees by at least 10 percent, beginning April 1, with salary cuts and work hour reductions.
In North America, OE revenue fell 39.5 percent to $333 million vs. $550 million for the year-ago period, driven by lower OE production volumes, according to the company, which noted that light vehicle production was down 51 percent for the industry, Class 8 commercial vehicle production fell 42 percent and Class 5-7 commercial vehicle production was down 47 percent from the previous year. However, aftermarket revenue rose 2.3 percent to $136 million.
“Despite current conditions, we continue to make targeted investments in technologies and the capabilities required to support upcoming customer launches, including regulatory-driven emission control business for light and commercial vehicles that begin production as early as the end of 2009,” Sherrill said.
Tenneco manufactures emission control and ride control products for the automotive OE market and aftermarket under the Monroe, Walker, Gillet and Clevite Elastomer brands.