Tenneco Automotive Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
December 4, 2000
TENNECO AUTOMOTIVE REALIGNS NORTH AMERICAN ORIGINAL EQUIPMENT UNIT; ESTABLISHES GLOBAL PROGRAM MANAGEMENT
Company Organizes North American Original Equipment Business Along Product Lines
Lake Forest, Illinois, December 4, 2000 - Tenneco Automotive (NYSE: TEN) announced today that it is realigning its North American original equipment business around its two major product areas; ride control and emission control systems. The company also announced that it is consolidating its program management resources to original equipment manufacturers under a single global team.
As part of this reorganization, the company appointed John Kitts to the new position of vice president and general manager, North American original equipment emission control; Neal Yanos to the new position of vice president and general manager, North American original equipment ride control; and Lois Boyd to the new position of vice president, global original equipment program management. The realignment and leadership changes are effective immediately.
"This product-focused structure pushes profit and loss, as well as EVA? accountability, deeper into the organization, and should result in better decision-making and improved cost management for our customers," said Mark P. Frissora, chairman and CEO, Tenneco Automotive. "We implemented the same structure in our European original equipment operations over a year ago and it is helping to improve the business unit's performance."
"We continue to expand our global original equipment business with close to $600 million of incremental business scheduled for production through 2005. This new structure will allow us to provide a cohesive worldwide approach to addressing our customers' increasingly global requirements, and lead to enhanced technical focus and a more concentrated use of resources," said Frissora.
Lois Boyd is promoted from the position of vice president, North American original equipment Ford business unit. Boyd joined the company in 1997 from Aeroquip/Vickers, where she served in the positions of global director of market development, director of North American original equipment distribution, and director of specification sales. Throughout her career, she has been successful in delivering global projects to automotive original equipment manufacturers as well as other industries. Boyd is a graduate of Oakland University with a bachelor's degree in business, and she completed postgraduate studies at Central Michigan University.
John Kitts is promoted from the position of vice president, North American original equipment DaimlerChrysler business unit. Kitts joined Tenneco Automotive's Walker exhaust division in 1987 and held positions in marketing, product training, and sales and engineering management. Kitts was promoted to business director of the North American original equipment General Motors business unit in 1997. He holds a bachelor's degree in psychology from Carroll College, and is a graduate of the Stanford Executive Management Program.
Neal Yanos is promoted from the position of director, North American original equipment GM/VW business unit. Yanos joined Tenneco Automotive's Monroe ride control division as a process engineer in 1988 and since that time has served in a broad range of assignments including product engineering, strategic planning, business development, finance, program management and marketing. He has an extensive ride control background, and was instrumental in acquisition and joint venture efforts resulting in the establishment of expanded ride control operations in South America and the Asia Pacific region. He holds a bachelor's degree in engineering from Purdue University and a master's degree from the University of Toledo.
Lois Boyd, John Kitts, and Neal Yanos will report to Mark Frissora and serve on his senior management team. The company anticipates completing the realignment by the end of January 2001.
Tenneco Automotive is a $3.3 billion manufacturing company headquartered in Lake Forest, Ill., with 24,000 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 how the realignment of the company's organizational structure for its North American OE business unit could impact cost management for the company's customers and improve the business unit's performance. Because 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) the general political, economic and competitive conditions in markets and countries where the company and its subsidiaries operate, including currency fluctuations and other risks associated with operating in foreign countries; (ii) governmental actions, including the ability to receive regulatory approvals and the timing of such approvals; (iii) changes in capital availability or costs, including increases in the company's costs of borrowing (i.e. interest rate increases); (iv) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products, including the company's resultant inability to realize the sales represented by its awarded book of business; (v) changes in consumer demand and prices, including decreases in demand for automobiles which include the company's products, and the potential negative impact on the company's revenues and margins from such products; (vi) the cost of compliance with changes in regulations, including environmental regulations; (vii) workforce factors such as strikes or labor interruptions; (viii) material substitutions and increases in the costs of raw materials; (ix) the company's ability to integrate operations of acquired businesses quickly and in a cost effective manner; (x) the company's ability to execute restructuring and other cost reduction plans and to realize anticipated benefits from these plans; (xi) the company's ability to develop and profitably commercialize new products and technologies, and the acceptance of such new products and technologies by the company's customers; (xii) further changes in the distribution channels for the company's aftermarket products, and further consolidations among automotive parts customers and suppliers; (xiii) changes by the Financing Accounting Standards Board or other accounting regulatory bodies of authoritative generally accepted accounting principles or policies; (xiv) 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.
CONTACT: Tenneco Automotive, Media relations
Jane Ostrander, 847/482-5607
Tenneco Automotive, Investor relations
Leslie Cleveland Hague, 847/482-5042