Tenneco Profit Tops Street - Update

(RTTNews) - Auto parts company Tenneco Inc (TEN), Monday reported a decline in first quarter profit, hurt mostly by restructuring charges and the absence of tax benefits recorded last year. However, results for the quarter topped Wall Street estimates as revenue climbed across key segments.

Tenneco makes clean air and ride performance products and systems for vehicle applications.

The Lake Forest, Illinois-based company reported first-quarter net income of $46 million or $0.75 per share, compared with $54 million or $0.88 per share last year.

Results for the quarter included restructuring and other charges of $10 million. The prior-year quarter included favorable tax adjustments of $13 million and restructuring charges of $4 million.

Excluding items, adjusted earnings for the quarter were $56 million or $0.91 per share, compared with $44 million or $0.72 per share a year ago. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter climbed to $2.09 billion from $ 1.90 billion in the prior year. Ten analysts had a consensus revenue estimate of $2.07 billion for the quarter.

Among segments, Clean Air revenue for the quarter increased 11 percent year-over-year, and Ride Performance revenue grew 7 percent.

"We delivered revenue growth in all Clean Air and Ride Performance operating segments, including year-over-year increases in light vehicle, commercial truck and off-highway, and the aftermarket," said CEO Gregg Sherrill.

Moving forward, Tenneco said prospects appear bright. The company expects global light vehicle production to increase 2 percent year-over-year in the regions where it operates.

Commercial truck and off-highway equipment revenue is projected to increase consistent with the full-year revenue growth estimate of 20 percent to 30 percent, Tenneco said.

Tenneco also expects a steady performance from its global aftermarket business, up slightly in the second quarter, with some growth in North America and Europe.

Tenneco stock is trading at $58.63, down $1.18 or 1.97%, on a volume of 0.8 million shares on the NYSE.