Tenneco has reported a fourth quarter net loss of $109 million, or $(1.35) per diluted share. Fourth quarter 2017 net income was $62 million, or $1.19 per diluted share. Adjusted net income was $105 million, or $1.30 per diluted share, versus $91 million or $1.75 per diluted share last year.
Total revenue in the fourth quarter was $4.3 billion, up 79 percent year-over-year, driven mainly by the completion of the Federal-Mogul acquisition on Oct. 1, 2018. Excluding the acquisition and on a constant currency basis, revenue increased 4 percent, outpacing light vehicle industry production by 10 percentage points. The outperformance was driven by volume and content growth with commercial truck and off-highway as well as light vehicle customers. Including Federal-Mogul results, value-add revenue was $3.6 billion, up more than 100 percent compared to last year.
“Tenneco’s strong organic growth continued in the fourth quarter, outpacing industry production by 10 percentage points, enabled by our diverse business profile in terms of products, geographic regions and end-markets served,” said Brian Kesseler, Tenneco co-CEO. “We closed the Federal-Mogul transaction, accelerating the transformation of the combined businesses into two purpose-built, industry leading companies, and our acquisition of Öhlins will fuel the growth of advanced suspension technology and enhance our portfolio in broader mobility markets.”
During the quarter, the company returned $20 million to shareholders through a dividend payment of 25 cents per share.
Full-Year Results
For the full year, total revenue was a record high $11.8 billion, including Federal-Mogul revenues since Oct. 1. Excluding the acquisition and the impact of currency exchange rates, Tenneco delivered full-year organic revenue growth of 6 percent, outpacing industry production by 7 percentage points, driven by 24 percent growth in commercial truck and off-highway and 5 percent light vehicle growth versus last year. Including Federal-Mogul results, value-add revenue was $9.3 billion, up 31 percent compared to last year.
Outlook
2019 revenue is expected in the range of $18.2 billion to $18.4 billion. On a pro forma basis the company expects constant dollar revenue growth in the range of 4 to 5 percent, outpacing light vehicle industry production by 6 to 7 percentage points. Global light vehicle production is forecast to be down 2 percent in 2019.
For the segments that will comprise the New Tenneco, the company expects pro forma constant dollar revenue growth in the range of 6 to 7 percent, and for DRiV segments we anticipate pro forma constant dollar revenue growth of approximately 1 percent. We anticipate currency to have a negative 2 percent year-over-year impact on 2019 revenue.
