LAKE FOREST, Ill.—COVID-19 production shutdowns gutted Tenneco Inc.'s revenue for the second quarter, which ended June 30. The company swung to a net loss of $350 million in the second quarter from a $26 million gain the year before.
Its adjusted net loss was $175 million, compared with income of $97 million in 2019.
The powertrain, ride performance and aftermarket parts supplier said revenue fell 42 percent to $2.6 billion because of lower light-vehicle sales.
The company also reported cash balances of $1.37 billion as of June 30, and said that it has "adequate liquidity" to weather the next few quarters.
In an earnings call, Tenneco said that it cut salary costs by at least 25 percent in the quarter, while executives reduced their salaries by 50 to 100 percent. Salary reductions will continue into the third quarter at 10 to 20 percent, Tenneco said.
The automotive supplier said that, while it will not issue a 2020 financial outlook, it expects third-quarter revenue "to improve substantially" but fall short of year-earlier results. The company also expects "sequential improvement in cash from operations" from continued cost savings and capital management.
"Despite the difficult times facing our industry, I remain confident in Tenneco's ability to weather the current economic downturn and emerge stronger than when we entered," CEO Brian Kesseler said.