LAKE FOREST, IL—April 30, 3012: Tenneco Inc. reported first quarter net income of $30 million, or 49-cents per diluted share, versus net income of $47 million, or 75-cents per diluted share, in first quarter 2011. Net income includes $11 million after-tax, or 18-cents per diluted share, in costs related to successfully refinancing the company's senior credit facility and retiring bonds due in 2015. The refinancing is expected to lower annual interest expense by about $20 million.
“Our growth plans and new program launches are on track and delivering results with revenue driven by our strong global position on light vehicle platforms and the ongoing ramp-up of commercial vehicle programs, particularly in North America”
On an adjusted basis, net income rose to $41 million, or 66-cents per diluted share, compared with $39 million, or 63-cents per diluted share, a year ago. The tables in this press release reconcile GAAP results to non-GAAP results.
Revenue
Total revenue in the quarter increased 9% to $1.912 billion, from $1.760 billion in first quarter 2011. Revenue excluding substrate sales and currency rose to $1.499 billion, versus $1.337 billion. The revenue increase was driven by the company's strong customer and platform position and higher OE light vehicle production volumes, incremental commercial vehicle revenue and higher North America aftermarket revenue. The year-over-year revenue comparison includes a negative currency impact of $50 million.
In the first quarter, total OE commercial and specialty vehicle revenue was $222 million, up from $147 million a year ago.
EBIT and EBIT Margin
EBIT (earnings before interest, taxes and noncontrolling interests) increased to $96 million from $94 million in first quarter 2011. Adjusted EBIT was $97 million, versus $95 million a year ago.
EBIT was driven by higher light vehicle production volumes, growing commercial vehicle revenue as these programs ramp up and higher North America aftermarket sales. The aftermarket negatively impacted EBIT by $11 million on product mix and new business changeover costs in North America and significant declines in Europe aftermarket sales as well as product mix. South America negatively impacted EBIT by $5 million on lower OE revenues driven by industry volumes and the company's decision to relinquish a platform due to pricing and profitability. EBIT includes $4 million in unfavorable currency.