Tenneco reported fourth quarter net income of $68 million, or $1.17 per diluted share, compared with $21 million, or 33-cents per diluted share in fourth quarter 2014. Adjusted net income rose to a fourth quarter record high of $80 million, or $1.39 per diluted share, versus $65 million or $1.05 per diluted share last year.
Total revenue in the fourth quarter was $2.031 billion, up 1 percent year-over-year against significant currency headwinds. Excluding a negative currency impact of $142 million, total revenue in the fourth quarter increased 8 percent to $2.173 billion. Tenneco said its total revenue, excluding currency, outgrew global aggregate industry production in the quarter, driven by:
- Light vehicle revenue growth of 11 percent, led by Europe, China and North America, which was more than twice the light vehicle industry production growth of 4 percent;
- Commercial truck and off-highway revenue increase of 1 percent, or 3 percent on a value-add basis, due to incremental content even as unit demand declined about 16 percent versus last year;
- A 3 percent increase in global aftermarket revenue on higher sales in Europe, South America and North America.
“I am pleased with our fourth quarter and full-year results as our revenue growth continued to outpace global industry production. We also delivered record-high EBIT as well as margin improvement and an outstanding cash performance,” said Gregg Sherrill, chairman and CEO, Tenneco. “These results demonstrate the strengths of our underlying business including a clear strategic direction, effective structural growth drivers, balance across our operations and a track record of solid execution.”
Full-Year 2015 Results
For the full year, Tenneco reported total revenue of $8.209 billion. Excluding the impact of $638 million in negative currency, revenue increased 5 percent to $8.847 billion, with growth in both the Clean Air and Ride Performance product lines.
Excluding currency, Tenneco revenue growth continued to outpace aggregate industry production in 2015 with OE light vehicle revenue improving 6 percent versus 1 percent industry growth, and commercial truck and off-highway revenue down 3 percent, or 1 percent on a value-add basis, versus a unit demand decline of 23 percent. Global aftermarket revenue increased 6 percent versus last year.
Share Repurchase
For the full year, Tenneco repurchased a total of 4.2 million shares for $213 million. As of year-end, Tenneco has authorization to make additional share repurchases of $337 million, which the company expects to complete by the end of 2017.
First Quarter 2016
Excluding currency, Tenneco expects total revenue growth of 5 percent in the first quarter 2016, outpacing aggregate industry production growth of 2 percent. Tenneco says the revenue increase will be driven by higher light vehicle volumes and the ramp up of recently launched programs, additional content on commercial truck and off-highway programs to meet emissions regulations, and year-over-year growth in the aftermarket. The company anticipates a currency headwind in the first quarter of approximately 2 percent based on current exchange rates.
