Tenneco Inc. said Monday that it will book $15 million in pretax charges over the next five quarters as its restructures its global manufacturing and distribution operations.
The Lake Forest, Ill., supplier plans to take an $8 million charge in the second quarter and then spread $7 million over the subsequent four quarters. Of the second-quarter charges, half will be for severance pay and half for other costs, including plant closings.
The charges stem from Tenneco's cost-cutting, resizing and efforts to improve efficiency at 20 locations around the world. The supplier says it could realize $10 million in annual savings from the streamlining plans.
Tenneco also said it has received $8 million in aftermarket business from 13 North American customers. It expects to count $4 million of this in revenue in the second quarter of this year.
Tenneco supplies shocks, struts, vibration control, load-assist products, springs, bushings, rods, roll control and exhaust systems. It ranks No. 36 on the Automotive News list of the top 150 suppliers to North America, with North American original-equipment automotive parts sales of $1.51 billion in 2005.
You may e-mail Greg Migliore at [email protected]