Tenneco net income rises 11% in Q1

Sherrill: "Another record quarter with our highest-ever first quarter revenue."

Ride- and emission-control systems supplier Tenneco Inc.’s first-quarter net income rose 11 percent to $63 million.

Total revenue for the quarter was up 7.3 percent from the previous year to $2.29 billion, reflecting higher sales in both its clean-air and ride-performance divisions.

Global revenue for the clean-air division -- comprising North America, Europe, South America and Asia Pacific -- climbed 77 percent to $1.63 billion. The increase was aided by strong volumes in the European, South American and North American markets.

The clean-air division’s North American operations revenue was $816 million, a 6.7 percent increase.

North American ride-performance division revenue fell 3.7 percent from a year earlier to $311 million, as the slight increase in light-vehicle revenue was offset by lower customer production in the commercial-truck segment and slowed aftermarket sales.

However, higher production in the European and South American market and Asian Pacific market bumped global revenue for the division up 6.4 percent to $661 million.

“We started the year strong by delivering another record quarter with our highest-ever first quarter revenue, EBIT, net income and earnings per share,” Tenneco CEO Gregg Sherrill said in statement. “The strong balance across our business in terms of regions, end-markets, customers and products helped us deliver another quarter of profitable growth as we executed well on growth plans for each product line.”

Tenneco said it expects global clean-air and ride-performance sales for light vehicles to drive organic revenue growth for the second quarter. For full year 2017, the supplier says it plans on a 5 percent increase in total revenue.

Sherrill is stepping down from the company helm effective May 17, but will remain executive chairman. COO Brian Kesseler will take over as CEO on that date. 

Tenneco is based in Lake Forest, Ill. It ranked No. 42 on the 2016 Automotive News list of 100 top global automotive parts suppliers.

You can reach Stephanie Hernandez McGavin at smcgavin@crain.com

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