Kubota Selects Tenneco for Selective Catalytic Reduction System
Mar 23 15
Tenneco announced that it is supplying key after treatment technologies to Kubota. The company is in serial production with a complete selective catalytic reduction (SCR) system that meets both Tier 4 Final and Stage IV emissions regulations for Kubota’s 3.8L diesel engine and all-new 6.1L engine for new agricultural equipment, slated for production later this year. This is the first SCR system to be produced at Tenneco’s manufacturing facility in Osaka, Japan. Tenneco’s SCR system includes a high-performance dosing technology that features a compact airless injector, a pump that enables unique return flow cooling, technology for rapid thawing, and complete control and diagnostics that seamlessly integrate with the engine management. Additionally, the company is providing full system integration capabilities to Kubota, supporting enhanced fuel economy and after treatment performance through weight reduction, optimized thermal management and efficient system design.
Tenneco Inc. and USW Signs Labour Three-Year Collective Deal
Feb 24 15
The United Steelworkers union (USW) has approved a three-year collective agreement with Tenneco Automotive in Cambridge, which will endeavors till February 2018. At the Cambridge, Ont. Tenneco plant, the firm hire over 430, who manufacture vehicle exhaust systems and emission control products. As per USW Local 2894 President Tony Koski, contract renders wage and pension increases in each year of the contract, as well as betterment in benefits and contract language.
Tenneco Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter of 2015 and Fiscal Year 2015
Feb 2 15
Tenneco announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported total net sales and operating revenues of $2,004 million against $2,031 million a year ago. Total earnings before interest expense, income taxes, and non-controlling interests were $83 million against $118 million a year ago. Earnings before income taxes and non-controlling interests were $50 million against $98 million a year ago. Net income attributable to the company was $21 million against $54 million a year ago. Diluted earnings per share of common stock were $0.33 against $0.88 a year ago. Net cash provided by operating activities was $252 million against $412 million a year ago. Cash payments for plant, property & equipment were $66 million against $66 million a year ago. Cash payments for software-related intangible assets were $4 million against $6 million a year ago. Total EBITDA including non-controlling interests was $136 million against $172 million a year ago. Non-GAAP EBITDA was $188 million against $181 million a year ago. Non-GAAP EBIT was $136 million against $127 million a year ago. Non-GAAP net income attributable to the company was $65 million or $1.05 per share against $59 million or $0.96 per share a year ago. Total revenue in the fourth quarter was down slightly year-over-year primarily due to the impact of $84 million in negative currency, as well as lower commercial truck and off-highway revenue. Excluding currency, total revenue in the fourth quarter increased 3% to $2.088 billion. The company recorded high adjusted EBIT, up 7%, and these results reflect earnings growth in both Clean Air and Ride Performance.
For the year, the company reported total net sales and operating revenues of $8,420 million against $7,964 million a year ago. Total earnings before interest expense, income taxes, and non-controlling interests were $492 million against $424 million a year ago. Earnings before income taxes and non-controlling interests were $401 million against $344 million a year ago. Net income attributable to the company was $226 million against $183 million a year ago. Diluted earnings per share of common stock were $3.66 against $2.97 a year ago. Net cash provided by operating activities was $341 million against $503 million a year ago. Cash payments for plant, property & equipment were $328 million against $244 million a year ago. Cash payments for software-related intangible assets were $16 million against $25 million a year ago. Total EBITDA including non-controlling interests was $700 million against $629 million a year ago. Non-GAAP EBITDA was $784 million against $707 million a year ago. Non-GAAP EBIT was $577 million against $502 million a year ago. Non-GAAP net income attributable to the company was $288 million or $4.65 per share against $233 million or $3.78 per share a year ago. For the full year, the company reported its highest-ever total revenue, up 6% from a year ago. The company's grew revenue in both the Clean Air and Ride Performance divisions and across all segments with OE light vehicle revenue improving 5%, commercial truck and off-highway revenue climbing 16% and aftermarket revenue increasing 1% versus last year. Excluding substrate sales, and the impact of $126 million in negative currency, revenue increased 8% to $6.612 billion from $6.129 billion a year ago. Earnings were driven by leveraging higher light vehicle volumes globally, commercial truck and off-highway revenue growth, higher North America aftermarket sales, the benefit of restructuring activities and managing operational costs. The 2014 year-over-year EBIT comparison includes $10 million in negative currency. The company recorded high adjusted EBIT in the full year, up 15%, and these results reflect earnings growth in both Clean Air and Ride Performance. Overall, the earnings were driven by the strength of its light vehicle business globally where they launched new programs and capitalized on stronger volumes.
The company provided earnings guidance for the first quarter of 2015 and fiscal year 2015. The company’s revenue growth will continue to be driven by consistent and strong structural growth drivers including: Increasing global light vehicle industry production; The company’s strong platform position on leading light vehicle programs, especially in the world’s larger and fastest-growing geographic markets; Emissions regulations which require new content to meet increasingly stringent requirements for light vehicles, as well as commercial trucks, off-highway equipment, locomotive, marine and stationary engines; Increased use of electronically controlled components in vehicle suspensions; The growing global car parc, which the company serves with the global aftermarket brands. For the first quarter of 2015, the company’s modest industry light vehicle production growth is expected, with IHS forecasting 1% growth in the regions where Tenneco operates. Excluding currency, Tenneco anticipates total combined OE and aftermarket revenue growth of about 4%, driven primarily by higher light vehicle unit volumes, additional content on commercial truck and off-highway programs to meet environmental regulations, and year-over-year growth in the aftermarket. Based on current exchange rates, the company anticipates a currency headwind in the first quarter of approximately 4%.
For the full year 2015, IHS is forecasting 3% higher industry light vehicle production globally. Tenneco anticipates OE light vehicle revenue in 2015 to continue outpacing global industry production, driven by the company’s strong platform position with leading OEMs worldwide, the launch and ramp up of new programs and increased technology content. The company anticipates further weakness in the off-highway industry as well as continued production weakness in commercial trucks in Brazil. However, Tenneco expects strong year-over-year revenue growth in its commercial truck and off highway business, driven by the ramp up of content to meet global emissions requirements, including in China as compliance with emissions regulations increases, as well as new program launches. Tenneco’s global aftermarket business is expected to continue to be a steady contributor to revenue performance, driven by the company’s market share in key regions. For the full year 2015, the company expects year-over-year total combined OE and aftermarket revenue growth in the range of 5% to 8%, excluding the impact of currency. Beyond 2015, there are no changes to Tenneco’s structural growth outlook excluding the effects of currency exchange rates and market cyclicality. In 2015, the company expects capital expenditures between 300 million and 320 million, annual interest expense about 75 million, and tax rate between 33% and 36%.