CHICAGO—Ride-control and emissions control systems supplier Tenneco Inc. said its adjusted net income for the fourth quarter increased 7.8 percent to $97 million, powered by strong growth in the commercial truck and off-highway business.
Total net income before adjustments surged 79 percent to $68 million from $38 million in the fourth quarter of 2017. Revenue during the quarter rose 11 percent to $2.39 billion.
The Chicago supplier attributed the sales gains to increased demand across its clean-air and ride performance arms.
Tenneco, in a statement on Friday, said adjusted income for the fourth quarter exceeded analysts' expectations with $1.89 per share, excluding noncomparable items, compared with $1.63 for the fourth quarter of 2016.
The adjusted earnings figure excludes interest, taxes and onetime events.
Revenue from the company's ride performance division, which includes brands such as Monroe shock absorbers, rose 14 percent to $696 million, from $613 million from the year-earlier period in 2016.
Core revenue from the clean air segment, which includes a variety of exhaust systems, manifolds and catalytic converters, climbed 9 percent to $1.11 billion.
For the full year, Tenneco's adjusted earnings before interest, taxes and one-time events rose 7 percent to $365 million. Revenue improved 7.8 percent to $9.27 billion.
"We delivered a quarter of strong organic growth with gains in both product lines and double-digit growth in commercial truck and off-highway revenue," CEO Brian Kesseler said in the company statement. "We continue to focus on converting top-line growth into higher earnings. This drove a strong increase in earnings, as well as record cash flow from operations in the quarter."
The company expects organic growth of 5 percent in 2018, driven by content growth on light- and commercial-vehicle platforms and the continued industry recovery in regulated off-highway regions.
Tenneco ranks No. 31 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $7.35 billion in 2016.
You can reach Jackie Charniga at [email protected].