Tenneco Inc. has established a $132 million fund to clean up antitrust lawsuits in the backwash of government investigations in Europe and the U.S., which are now concluding.
The one-time charge derailed Tenneco's earnings for the second quarter. The company reported a net loss of $2 million, compared with $84 million in earnings a year earlier.
Addressing analysts in Tenneco's earnings call Friday morning, CEO Brian Kesseler also attributed the loss to restructuring costs and changing steel prices.
"This is really about the steel economic recoveries," Kesseler said, referring to the steel prices Tenneco pays to produce its products.
The loss belied Tenneco's growth in a largely flat market. The supplier reported a 6 percent rise in second-quarter revenue, generating more sales from both its clean air and ride performance divisions.
Global revenue for the clean air division -- comprising North America, Europe and South America, and Asia Pacific -- rose 4.3 percent to $1.62 billion. The improvement was helped by healthy volumes in the European, South American and North American regions.
For the ride performance division, all three regions saw revenue increases. North America had a slight gain of 2.2 percent, as softening production of U.S. light vehicles was offset by strong performance in the commercial-truck and off-highway segment. Europe and South America advanced 5.6 percent while revenue in Asia Pacific jumped nearly 20 percent.
Tenneco's earnings per share advanced 16 percent to $1.90, beating analysts' $1.80 consensus.
The company's shares dropped 5.5 percent to $56.21 in late-day trading in New York.
General Motors was the supplier's biggest account last year, followed by Ford Motor Co. and Volkswagen AG, representing $1.5 billion in sales, good for 17 percent of the year-end global total of $8.6 billion. Ford accounted for $1.1 billion, or 13 percent, and Volkswagen took 7 percent with $601.9 million in full-year global sales.