LAKE FOREST, Ill.—Tenneco Inc.'s third-quarter net income rose 22 percent to $70 million from $57 million in the same period last year.
Revenue rose 82 percent to $4.3 billion but the company slashed its full-year outlook for revenue as a result of the UAW's strike at General Motors.
The latest results reflect strong growth in commercial truck, off-highway and industrial sales, improved cash generation and cost savings, Tenneco said.
Despite the latest rise in revenue and net income, the ride control and emissions systems supplier lowered its 2019 revenue outlook to $17.25 billion to $17.35 billion from a previous range of $17.6 billion to $17.8 billion.
"We anticipate $95 million of negative sales impact in the fourth quarter from the General Motors strike," Ron Hundzinski, Tenneco executive vice president of finance, said in a call with investors on Thursday.
As a result of the strike, the supplier expects sales at its DRiV aftermarket division to be negatively impacted by $30 million.
It also cut its full-year adjusted earnings outlook to $1.43 million to $1.45 million from a previous range of $1.52 million to $1.567 million because of lower volumes, an unfavorable business mix and the GM strike impact, the supplier said in a statement.
The GM strike negatively impacted EBITDA by $2 million in the third quarter, co-CEO Brian Kesseler told investors. The company said it expects the GM labor stoppage to have a total negative impact on EBITDA of approximately $35 million.
Tenneco shares closed Oct. 31 trading down 9.5 percent to $12.59.
The GM strike has impacted several other major suppliers, including Aptiv, Lear Corp., Nemak, Adient and Faurecia.
Tenneco is reorganizing two of its business divisions into separate companies—a powertrain training company and DRiV, an aftermarket and ride performance company. Tenneco expects the two businesses to be separated operationally by year-end. The supplier also said it is evaluating multiple options to facilitate the separation and to "help mitigate the impact of challenging market conditions."
Tenneco Inc. ranked No. 26 on the Automotive News list of the top 100 global auto suppliers, with worldwide sales to auto makers of $10 billion in 2018.