LAKE FOREST, Ill.
Tenneco has reported first quarter net income of $30 million, or 49 cents per diluted share, versus net income of $47 million, or 75 cents per diluted share, in first quarter 2011. Net income includes $11 million after-tax, or 18 cents per diluted share, in costs related to successfully refinancing the company’s senior credit facility and retiring bonds due in 2015. The refinancing is expected to lower annual interest expense by about $20 million.
On an adjusted basis, net income rose to $41 million, or 66 cents per diluted share, compared with $39 million, or 63 cents per diluted share, a year ago.
Total revenue in the quarter increased 9 percent to $1.9 billion, from $1.76 billion in first quarter 2011. Revenue excluding substrate sales and currency rose to $1.5 billion, versus $1.3 billion. The revenue increase was driven by the company’s strong customer and platform position and higher OE light vehicle production volumes, incremental commercial vehicle revenue and higher North America aftermarket revenue. The year-over-year revenue comparison includes a negative currency impact of $50 million.
In the first quarter, total OE commercial and specialty vehicle revenue was $222 million, up from $147 million a year ago.
"Our growth plans and new program launches are on track and delivering results. with revenue driven by our strong global position on light vehicle platforms and the ongoing ramp-up of commercial vehicle programs, particularly in North America," said Gregg Sherrill, chairman and CEO, Tenneco. "We're pleased with our top-line growth, the strong performance of our OE emission control business and the continuing improvement of our North American OE ride control business. Specific business and market factors in the global aftermarket and South America did impact our EBIT and EBIT margin in the quarter."
Cash from operations was a use of $85 million in the quarter, an $18 million improvement compared with cash use of $103 million a year ago. The cash performance was driven by working capital improvements and is in line with the normal seasonality of the company’s cash flow.
Tenneco said it continued to strategically invest in growth with capital expenditures in the quarter of $59 million, up from $41 million the prior year. The majority of spending was in the Europe and North America OE businesses to support new light and commercial vehicle customer program launches, and in China to accommodate new programs and new customers.
Tenneco’s net debt at March 31, was $1.165 billion, versus $1.132 billion the prior year.