Tenneco 2Q net income falls 28 pct on higher taxes

Tenneco posts 28 pct drop in 2nd-qtr net income, but adjusted results match predictions

Associated Press

LAKE FOREST, Ill. (AP) -- Tenneco topped most revenue expectations for the second-quarter in which earnings were dragged down by a tax rate that essentially doubled.

The auto parts maker earned $63 million, or $1.02 per share, down from $87 million, or $1.42 per share, in the same quarter of 2012. Excluding one-time charges, net income was $1.10 per share, which was in line with Wall Street projections.

Sales at its sales at its emission technology business helped to drive revenue 8 percent higher to $2.07 billion, edging out analysts expectations.

Revenue at the company's emissions control business rose 10 percent to $1.41 billion, as car and truck production increased in North America, China and South America. The company's European light and commercial vehicle businesses also posted revenue increases.

Revenue at the company's ride performance business increased 2 percent to $661 million, largely as a result of strong light vehicle production in China.

Tenneco's tax rate jumped to 39 percent from 18 percent in the year-ago period, mainly as a result of changes in U.S. tax policies. Income tax expense rose to $47 million, from $21 million.

Shares of Tenneco Inc. rose $1.16, or 2 percent, to $49.90 in premarket trading.

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