Lake Forest, Illinois, May 23, 2011 – Tenneco Inc. (NYSE: TEN) announced that the company’s board of directors has approved a share repurchase program, authorizing the repurchase of up to 400,000 shares of the company’s outstanding common stock over the next 12 months.  The repurchase program is intended to offset dilution from shares of restricted stock and stock options that were issued in 2011 to employees under Tenneco’s long-term compensation plan.

 

Tenneco has focused on reducing its borrowing levels and improving the company’s financial flexibility since becoming a stand-alone company.  At the end of 2010, Tenneco had reduced its debt net of cash balances by $502 million over the course of the previous 10 years. While debt reduction remains a priority, the company is now in a position to expand its options for using cash.

 

“It is the right time to begin capital returns to our shareholders given the substantial progress we have made in improving our financial position,” said Gregg Sherrill, chairman and CEO, Tenneco.  “At the same time, we remain committed to further improving our financial strength, and investing in our strategic initiatives – from new technologies and products to our global footprint – so that Tenneco remains well-positioned to take advantage of organic and other growth opportunities.”

 

The company anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations.  The repurchase program does not obligate Tenneco to make repurchases at any specific time or situation.