Stock Alert: Tenneco Loses 14% After Updating Q4 Results

(RTTNews) - Shares of Tenneco Inc. (TEN) are losing more than 14 percent in the morning trade on Monday at $7.88, after the company said it is updating certain fourth-quarter and full year 2019 results. The stock has traded in a range of $7.62 to $35.11 in the past 52 weeks.

Tenneco is a manufacturer of clean air, powertrain, and ride performance products and systems for light vehicles and commercial trucks as well as for off-highway, industrial, and aftermarket customers.

Monday, Tenneco said that an adjustment to inventory primarily within a distribution center related to the legacy Federal-Mogul North America Motorparts business resulted in a reduction to pre-tax income of $27 million, or a $20 million impact to net income, for the fourth quarter of 2019.

The company had earlier reported net loss for the fourth quarter of $293 million or $3.62 per share, and adjusted earnings of $23 million or $0.28 per share. This adjustment encompassed manual processes that have largely been automated over the past year. Tenneco said it has a material weakness in its internal control over financial reporting due to a lack of incremental resources in its North America Motorparts business.

However, the company added that the impact of the adjustment was not material to any prior periods in 2019 and also will not materially impact its 2020 first quarter as well as full-year outlook provided on February 20.