Lake Forest, Illinois, April 19, 2011 – Tenneco Inc. (NYSE:TEN) announced today it has been awarded new North America aftermarket business that is expected to generate more than $15 million in revenue annually. This new business includes the company’s first-ever business with AutoZone, supplying emission control products, and new business with six other customers for performance exhaust and ride control products.
The company will incur $12 million in changeover costs related to the new business. These costs cover the expense of replacing competitor products with Tenneco’s products at the customers’ locations. Because shipments begin in April, Tenneco expects to record these costs in its second quarter results. Tenneco had previously indicated that these costs would be incurred in the first quarter.
“These new business awards are the latest testament to the strength of our brands, product quality and ability to leverage our advanced OE technologies in the aftermarket,” said Joe Pomaranski, vice-president and general manager, North America aftermarket.
Tenneco is a $5.9 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 22,000 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 and commercial vehicle original equipment markets 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 “expected,” “will,” 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) the overall highly competitive nature of the automotive parts industry; (ii) the cyclical nature of the global vehicular industry, including the performance of the global aftermarket sector; and changes in consumer demand and prices; and (iii) further changes in the distribution channels for the company's aftermarket products. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.