Company evaluating “multiple strategic options” to deleverage and facilitate the separation of the businesses.
Tenneco has reported a third quarter 2019 revenue of $4.3 billion, an 82 per cent increase versus $2.4 billion a year ago, which includes $1.8 billion from acquisitions.
On a constant currency pro forma basis, total revenue increased three per cent versus last year, while light vehicle industry production declined three per cent in the quarter.
Value-add revenue for the third quarter was $3.5 billion.
The company reported net income for third quarter 2019 of $70 million, or $0.87 per diluted share.
Third quarter 2018 net income was $57 million, or $1.11 per diluted share.
Third quarter 2019 adjusted net income was $99 million, or $1.23 per diluted share, compared with $85 million, or $1.66 per diluted share last year.
Third quarter earnings before interest, taxes and noncontrolling interests (EBIT) was $148 million including the acquired Federal-Mogul business, versus $112 million last year.
EBIT as a per cent of revenue was 3.4% versus 4.7% last year.
Third quarter adjusted EBITDA was $387 million versus $366 million last year on a pro forma basis.
Adjusted EBITDA as a percent of value-add revenue was 10.9 per cent, a 100 basis point improvement on a pro forma basis, which includes a $13 million impact due to a work stoppage at our largest customer.
Cash generated from operations was $164 million.
Roger Wood, co-CEO at Tenneco, said: “Tenneco’s revenue growth outpaced industry production by six percentage points, driven by higher light vehicle, off-highway and other revenues.
“We also delivered year-over-year margin improvement, driven mainly by effective synergy capture actions, operational improvements and disciplined cost management.”
Tenneco remains committed to the separation of the businesses and continues to execute its plan for the spin off.
Additionally, the company is evaluating multiple strategic options to deleverage and facilitate the separation.
Certain of these options could help mitigate the impact of challenging market conditions, which, if current trends were to continue, would likely affect the company’s ability to complete a separation in the mid-year 2020 time range.
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