Tenneco Q2 Profit Rises - Quick Facts

(RTTNews) - Tenneco Inc. (TEN) reported that its second quarter net income attributable to the company rose to $81 million or $1.32 per share, from $63 million, or $1.02 per share in second quarter 2013.

Excluding restructuring costs and a tax adjustment this quarter, net income increased to $89 million, or $1.45 per share, compared with $68 million, or $1.10 per share a year ago. Improved results were driven by stronger production volumes, operational performance and a more favorable effective tax rate compared with last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.26 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue in the second quarter increased 8% year-over-year to $2.241 billion, on higher revenue in both product lines with Clean Air revenue increasing 10% and Ride Performance up 6%. Excluding substrate sales and currency, total revenue was up 10% to $1.731 billion. Wall Street expected revenues of $2.22 billion.

For the third quarter, global light vehicle production is forecasted to increase 5% year-over-year in the regions where Tenneco operates. The increase includes a 9% increase in North America, 11% in China and 9% in India. Europe is forecasted to be flat, and South America is expected to decline 12%. Tenneco expects its light vehicle revenue in the third quarter to grow in line with the forecast for global industry light vehicle production.

Significant growth will continue in Tenneco's commercial truck and off-highway business as revenue is expected to increase 20% to 25% in the third quarter against a strong year-over-year comparison. The company is launching new business and incremental content on existing platforms to meet off-highway regulations in North America and Europe and expects higher commercial truck revenue in China.