Tenneco has reported third quarter net income of $180 million, or $3.21 per diluted share, which included the benefit of a foreign tax credit adjustment, compared with net income of $52 million, or 88 cents per diluted share in third quarter 2015. Adjusted net income increased 18 percent to $86 million, or $1.53 per diluted share, versus $73 million or $1.22 per share a year ago.
Total revenue in the third quarter was $2.1 billion, up 4 percent year-over-year on strong global light vehicle revenues, driven by both the Clean Air and Ride Performance product lines.
On a constant currency basis, total revenue increased 5 percent to $2.1 billion, driven by a 9 percent increase in global light vehicle revenue, outpacing 5 percent growth in global light vehicle industry production. Tenneco’s OE commercial truck and off-highway revenue was down due to a significant off-highway market decline in North America. Global aftermarket revenue was slightly lower versus a year ago. Value-add revenue was up 6 percent versus last year.
“We delivered another record quarter, driven by the strength of our light vehicle business globally where we have an outstanding platform position across a broad base of customers,” said Gregg Sherrill, chairman and CEO, Tenneco. “Strong volumes on key platforms and the launch of new light vehicle programs fueled our top-line growth. While light vehicle revenue nearly doubled industry growth, we saw a sharp decline in off-highway revenue as a result of weaker than expected off-highway market conditions in North America. We also delivered record high earnings and did an excellent job converting earnings to cash, which contributed to a very strong third quarter cash performance.”