Packaging Play

Will Tenneco bag higher profits from plastics? On Oct. 2, the Houston company said it would spent $1.27 billion to add Mobil's Hefty Bags and Baggies products to its packaging division, a business expected to generate 32% of total operating profits of $1.5 billion this year. The move came on top of asset sales and other restructuring moves. But Tenneco shares are still 9% off their late July trading range of 50. Analysts say investors are concerned about competition faced by Tenneco's natural-gas unit.