CHICAGO -- Tenneco Automotive Inc., which makes shock absorbers and mufflers, on Thursday said quarterly earnings rose as gains in Europe and with Japanese automakers in North America boosted revenue.
Net income rose to $33 million, or 71 cents per diluted share, from $30 million, or 69 cents per diluted share, a year earlier. Revenue rose 6 percent to $1.18 billion.
Excluding restructuring and tax adjustments, Tenneco earned $35 million or 77 cents per share, compared with the average analyst forecast of 73 cents, according to Reuters Estimates.
Tenneco said cost reductions, such as improving plant usage, supported earnings, and favorable currency exchange rates added about $33 million to revenue for the quarter.
Tenneco, based in Lake Forest, Illinois, said gross margin declined 1.3 percentage points to 20.3 percent because of higher steel costs, restructuring charges and business mix offset savings from efficiencies.
Steel costs rose $35 million in the quarter. But because of efforts to offset increases with higher prices and steel market trends, Tenneco said it does not expect a significant impact on operating results the rest of 2005.
Tenneco ranks No. 36 on the Automotive News list of top 150 original equipment suppliers to North America with original equipment sales of $1.44 billion in 2004.