Tenneco announced that in 2018 the company expects to outpace light vehicle industry production* by 3 percentage points, in line with last year’s estimate for 2018 revenue growth. In total, the company expects 2018 revenue growth of 5 percent, driven by increases in both the Ride Performance and Clean Air product lines. This growth assumes current industry production forecasts and is at 2017 constant currency.
In 2018, the company expects 5 percent organic growth driven by content growth on light and commercial vehicle platforms, as well as the continued industry recovery in regulated off-highway regions.
Assumptions for the 2018 revenue outlook include:
- Global industry light vehicle production +2 percent*
- Global commercial truck production about flat**
- Off-highway engine production in regulated regions up by low double-digits***
- Organic growth is net of OE price downs
- Substrates estimated at 24-25 percent of total revenue
Tenneco also announced its revenue guidance for 2019 and 2020. In those years, the company expects to outperform industry production by:
- 4 to 6 percent in 2019
- 3 to 5 percent in 2020
Tenneco will report its fourth quarter and full-year 2017 financial results on Feb. 9, 2018.
*IHS Automotive December 2017 global light vehicle production and Tenneco estimates.
**Power Systems Research (PSR) January 2018 global commercial truck and bus production and Tenneco estimates.
***Customer schedules and Tenneco estimates for off-highway engine production in North America and Europe.
