Tenneco Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
March 13, 2008
TENNECO AWARDED $200 MILLION IN NEW BUSINESS IN 2007 WITH JAPANESE VEHICLE MANUFACTURERS
Tokyo, Japan, March 13, 2008 – Tenneco (NYSE:TEN) announced today that the company won new business with Japanese original equipment manufacturers (OEMs) in 2007 worth approximately $200 million in annualized revenues. The new business includes contracts with five Japanese OEMs for vehicles launching between 2008 through 2010.
At a press conference in Tokyo today, Tenneco Chairman and CEO Gregg Sherrill also announced that Tenneco grew its total revenues with Japan-based OEMs to a record high $583 million in 2007. Revenue from Japan-based OEMs was 11% of Tenneco’s global OE revenue in 2007 and 17% of North American OE revenue.
"We are pleased to see the results of our continued focus on growing with the Japan-based OEMs and, equally important, we are diversifying within that market both in terms of customers and geographic locations," said Sherrill. "Our development and launch performance, advanced technology, and global engineering and manufacturing presence, particularly in fast-growing markets like China and India, are fueling this rapid growth."
- Approximately 20% of the new business is in the growing "BRIC" countries – Brazil, Russia, India and China - where customers are looking for global engineering and manufacturing capabilities and a well-established presence.
- About 16% of the new business is on A/B segment vehicles, which showcases Tenneco’s technological capabilities across the spectrum of vehicle classes.
- The majority of the new business – 82% - is emission control, with ride control making up 14% and elastomers 4%.
The new business also includes diesel aftertreatment business for an A/B segment car to be manufactured in India, reflecting Tenneco’s ability to transfer its hot-end emission control capabilities globally. "This new business is further proof that Tenneco is strongly positioned across all of its product lines to provide OEM customers with the right solutions in the right places at the right times," Sherrill said.
"Our 2007 revenue growth and new business wins reflect Tenneco’s commitment to building sustainable, long-term business relationships with our Japan-based customers," said Jeff Jarrell, vice president, Japan and Korea global OEM business. "We’re confident that we will continue to expand our market share worldwide with Japan-based OEMs."
Tenneco serves seven Japanese OEM customers in 14 countries. In Japan, the company continues a multi-million dollar upgrade of its engineering center in Yokohama and opened branch offices in Nagoya and Hiroshima this past year.
The revenues associated with the new business announced today are reflected in the company’s 2008 and 2009 global OE revenue estimates it provided in its fourth quarter and full-year 2007 earnings news release issued on January 24, 2008. The company also included these revenues when, in the same January 24, 2008 news release, it projected Tenneco will achieve an average compounded annual OE revenue growth rate of 11% to 13% between 2008 and 2012.
Additional Financial/Investor Information
Tenneco breaks out "value-added" revenues of its global OE sales for the financial community. These are revenues excluding emission control substrate sales. Substrate sales are $97 million of the $200 million in new business announced today.
Tenneco is a $6.2 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. These forward-looking statements are based on Tenneco’s current expectations. Because these forward-looking statements involve risks and uncertainties, our actual results could differ materially. See the Outlook section of "Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in Tenneco’s Annual Report on Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission for further information regarding Tenneco’s revenue estimates. Tenneco undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.