Tenneco Automotive Lowers 2000 Year-End
Earnings Estimate
LAKE FOREST, Ill., Jan. 25 Tenneco Automotive
announced today that it expects 2000 earnings results to be lower than
consensus analyst estimates due primarily to difficult industry and market
conditions. Significant production cutbacks by North American vehicle
manufacturers, and further weakening in the global aftermarket, particularly
in North America, have impacted the company's results.
The company expects 2000 full-year earnings per share in the range of
5 cents to 10 cents, and full year EBITDA between $334 million and
$338 million. These estimates are before certain previously reported one-time
non-operational items and extraordinary charges taken in the third quarter, as
well as anticipated charges in the fourth quarter related to previously
announced restructuring actions and the early repayment of debt.
"We have implemented strict cost control measures to reduce current SG&A
and other spending," said Mark P. Frissora, chairman and CEO, Tenneco
Automotive. "In addition, we are accelerating aggressive long-term cost
reduction initiatives in order to minimize the impact of this industry
slowdown."
Tenneco Automotive will release 2000 fourth quarter and year-end earnings
on February 6, 2001.
Tenneco Automotive is a $3.5 billion manufacturing company headquartered
in Lake Forest, Ill., with 23,000 employees worldwide. Tenneco Automotive is
one of the world's largest producers and marketers of ride control and exhaust
systems and products, which are sold under the Monroe(R) and Walker (R) global
brand names. Among its products are Sensa-Trac(R) and Reflex(TM) shocks and
struts, Rancho(R) shock absorbers, Walker(R) Quiet-Flow(TM) mufflers and
DynoMax(TM) performance exhaust products, and Monroe(R) Clevite(TM) vibration
control components.
This press release contains forward-looking statements concerning the
company's anticipated 2000 earnings per share and EBITDA. The words
"expects," "will" and "estimates" identify these forward-looking statements.
These forward-looking statements are based on the current expectations of the
company (including its subsidiaries). Because forward-looking statements
involve risks and uncertainties, the company's actual results could differ
materially. Among the factors that could cause these results to differ
materially from current expectations are the general economic and competitive
conditions in markets and countries where the company and its subsidiaries
operate, the actual cost and timing of implementing restructuring and other
cost reduction plans and the timing and occurrence (or non-occurrence) of
transactions and events which may be subject to circumstances beyond the
control of the company and its subsidiaries. The company undertakes no
obligation to update any forward-looking statement to reflect events or
circumstances after the date of this press release.