Tenneco Rises After Profit Tops Analysts’ Estimates
Tenneco Inc. (TEN) rose the most in more than three years after the maker of diesel-exhaust filters and mufflers reported quarterly profit exceeding analysts’ estimates.
Tenneco advanced 16 percent to $30.97 at 11:15 a.m. in New York, after reaching $31.23, for the biggest intraday gain since July 2009. The shares dropped 10 percent this year through yesterday after a 28 percent slide in 2011.
The company, based in Lake Forest, Illinois, reported third-quarter net income of $125 million, or $2.05 a share, compared with $30 million, or 49 cents, a year earlier. Excluding one-time items, including a tax allowance of $74 million, or $1.22 a share, profit was $52 million or 85 cents. On that basis, the average estimate of 14 analysts in a Bloomberg survey was for a per-share profit of 75 cents.
Tenneco, whose customers include General Motors Co. (GM) and Volkswagen AG (VOW), said it benefited from higher light-vehicle production in North American and China and “effective operational cost control,” which helped earnings before interest, taxes and non-controlling interests widen to 6.2 percent of sales from 4.7 percent. Sales rose 0.3 percent to $1.78 billion, compared with $1.81 billion, the average estimate of 11 analysts in a Bloomberg survey.
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