LAKE FOREST, Ill. — Tenneco announced that it has been awarded new North America aftermarket business that is expected to generate more than $15 million in revenue annually. This new business includes the company’s first-ever business with AutoZone, supplying emission control products, and new business with six other customers for performance exhaust and ride control products.
The company will incur $12 million in changeover costs related to the new business. These costs cover the expense of replacing competitor products with Tenneco’s products at the customers’ locations. Because shipments begin in April, Tenneco expects to record these costs in its second quarter results. Tenneco had previously indicated that these costs would be incurred in the first quarter.
“These new business awards are the latest testament to the strength of our brands, product quality and ability to leverage our advanced OE technologies in the aftermarket,” said Joe Pomaranski, vice-president and general manager, North America aftermarket.
