Tenneco 1Q net income up on hefty gain, easy comps

Tenneco posts 80 pct. jump in 1st-qtr net income as hefty financing costs retreat

Associated Press

LAKE FOREST, Ill. (AP) -- Auto parts maker Tenneco Inc. said Monday that its first-quarter net income jumped 80 percent, helped by easy comparisons to last year's quarter, which was weighed down by hefty expenses related to financing.

The Lake Forest, Ill.-based company earned $54 million, or 88 cents per share, up from $30 million, or 49 cents per share, in the same quarter of 2012.

Both quarters included restructuring costs, while the year-ago quarter included $11 million in financing costs and the recent period included a tax-related gain of $13 million.

Excluding those items, Tenneco posted an adjusted profit of $44 million, or 72 cents per share, up from an adjusted $41 million, or 66 cents per share, a year ago.

Revenue was nearly flat at $1.9 billion compared with $1.91 billion a year ago.

The results beat Wall Street predictions. Analysts, on average, expected 65 cents per share on $1.86 billion in revenue, according to FactSet.

Revenue from emissions-control systems edged up about 1 percent to $1.3 billion, as an increase in Chinese vehicle production boosted Asia Pacific demand. Revenue in the company's ride performance division fell 3 percent to $607 million, hurt by an overall drop in European demand and lower North American commercial vehicle demand.

Tenneco expects a boost from better light vehicle production in the second quarter, with production increasing in most of the world, except Europe.

Tenneco shares rose 7 cents to $37.70 in morning trading.

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