Tenneco's Q2 profit rises 29% on record revenue
Tenneco Inc., a ride-control and emission-control systems supplier, reported that its net income rose 29 percent in the second quarter from a year ago to $81 million on record revenue of $2.2 billion.
For the second quarter of 2013, Tenneco’s net income was $63 million.
The quarterly revenue slightly topped the previous record of $2.1 billion generated during the same quarter last year.
The company, in a statement on Monday, attributed its higher earnings to an improved effective tax rate, along with stronger production volumes and operational performance.
It reported pretax restructuring and related charges of $10 million and tax adjustments of $1 million compared with one-time charges of $7 million during the same period last year.
Both of Tenneco’s product lines increased revenues for the quarter, with the clean air division up 10 percent and ride performance up 6 percent. The company said improved light vehicle production worldwide was partly responsible for the bump in revenues.
“Our strategic imperatives for each product line and strong execution are driving this top-line growth and continued profitability improvement,” Tenneco CEO Gregg Sherrill said in a statement.
He added that the company expects “a solid contribution from the global aftermarket” to increases in Tenneco’s aftermarket division revenue, which was up 4 percent in the second quarter. The company is based in suburban Chicago.