Tokyo, Japan/Lake Forest, IL – March 9, 2009 – Tenneco Inc. (NYSE: TEN) announced today the company won $65 million (annualized) in new business with Japanese original equipment manufacturers (OEMs) during 2008. This builds on the company’s success in 2007, when Tenneco won $200 million (annualized) in new business with Japanese OEMs.
The 2008 new business includes contracts with four Japanese OEMs for vehicles launching between 2009 and 2011. Other key facts regarding the new business announced today include:
- More than 85% ($56 million) is incremental;
- Approximately 60% is launching in the BRIC+T countries – Brazil, Russia, India, China and Thailand – where customers are looking for suppliers with a well-established presence and global engineering and manufacturing capabilities;
- About 65% is on A/B segment (smaller-sized) vehicles, which showcases Tenneco’s technological capabilities across all vehicle classes; and
- The new business announced today supplies 13 different vehicle platforms launching in nine different countries.
"We continued to move forward on our strategic imperative to grow our business with the Japan-based OEMs in 2008 despite the difficult global economic and industry conditions," said Gregg Sherrill, chairman and CEO, Tenneco. "Tenneco’s development and launch capabilities, strong advanced technology offering and global engineering and manufacturing presence continue to drive new business with these customers."
Tenneco is making significant progress with the Japanese OEMs in the BRIC + T countries and its predominant small car segment. Nearly one third – approximately $82 million (annualized) – of the new business Tenneco has won with its Japanese OEM customers in the last two years will be produced in these fast-growing automotive markets, 80% of which is for small cars.
"Tenneco’s worldwide annual revenues generated with Japanese customers have doubled over the last seven years as a result of our global capabilities," said Jeff Jarrell, Tenneco’s managing director for Japan and vice president of global Japanese OEM business. "This global growth reflects Tenneco’s commitment to building long-term business relationships with our Japan-based customers, based on delivering quality products and outstanding service."
Tenneco is a $5.9 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 21,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. Tenneco markets its products principally under the Monroe®, Walker®, Gillet™ and Clevite®Elastomer brand names.
This press release contains forward-looking statements. Words such as "expect," "will," "continue" and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company's plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are: (i) general economic conditions; (ii) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products; (iii) the overall highly competitive nature of the automotive parts industry; and (iv) the cyclical nature of automobile sales and production. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
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