Tenneco stock up 14% after Q3 profits rise
DETROIT (Reuters) -- Tenneco Inc. today reported strong quarterly adjusted profits, sending the emission- and ride-control parts maker's share price up more than 14 percent, but it signaled that it will sustain losses in Europe due to slow auto sales there.
Excluding one-time items, Tenneco's third-quarter adjusted profit was $52 million, or 85 cents per diluted share, compared to $42 million, or 67 cents per diluted share. Its profit excluding one-time items of 85 cents beat analyst expectations of 75 cents per diluted share, according to Thomson Reuters.
Tenneco shares closed the day up 14.4 percent at $30.65.
"While Tenneco enjoys a strong customer and platform position, the company anticipates lower year-over-year revenue decline" for Europe, both for its new-vehicle business and in the aftermarket, Tenneco said in a statement.
In the third quarter, Tenneco's revenue was essentially flat, at $1.778 billion from $1.773 billion a year earlier.
Tenneco also said it expects fourth-quarter auto industry production in North America and China to strengthen compared with last year, but for the decline in Europe to continue.
Tenneco, based in the Chicago suburbs, ranks No. 34 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $5.9 billion in 2011.Contact Automotive News