Auto parts manufacturer Tenneco reports 7% earnings increase during 2017
Ride-control and emissions control systems supplier Tenneco Inc. said its adjusted net income for the fourth quarter increased 7.8% to US$ 97 million, powered by strong growth in the commercial truck and off-highway business.
Total net income before adjustments surged 79% to US$ 68 million from US$ 38 million in the fourth quarter of 2017. Revenue during the quarter rose 11% to US$ 2.39 billion.
For the full year, Tenneco’s adjusted earnings before interest, taxes and one-time events rose 7% to US$ 365 million. Revenue improved 7.8% to US$ 9.27 billion.
Revenue from the company’s ride performance division, which includes brands such as Monroe shock absorbers, rose 14% to US$ 696 million, from US$ 613 million from the year-earlier period in 2016.
Core revenue from the clean air segment, which includes exhaust systems, manifolds and catalytic converters, climbed 9% to US$ 1.11 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.”
Tenneco operates four manufacturing facilities in Mexico. Two facilities belonging to its clean air division are located in Aguascalientes and Puebla. Another two production sites, dedicated to products of the ride performance division, are located in Celaya, Guanajuato and Reynosa, Tamaulipas.