LAKE FOREST, ILLINOIS, JANUARY 25, 2001 - Tenneco Automotive (NYSE: TEN) 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® and Walker ® global brand names. Among its products are Sensa-Trac® and Reflex shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow™ mufflers and DynoMax™ performance exhaust products, and Monroe® Clevite™ 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.
CONTACT: Tenneco Automotive, Media relations
Jane Ostrander, 847/482-5607
Tenneco Automotive, Investor relations
Leslie Cleveland Hague, 847/482-5042