Tenneco Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
February 11, 2008
TENNECO WINS NEW EMISSION CONTROL BUSINESS WITH FORD MOTOR COMPANY
Lake Forest, Illinois, February 11, 2008 – Tenneco Inc. (NYSE: TEN) today announced that the Ford Motor Company awarded Tenneco new hot-end emission control business on vehicles launching in model-year 2009 and 2010.
"We are extremely pleased to be selected by Ford for this significant new emissions control business," said Gregg Sherrill, Tenneco Chairman and CEO. "We continue to generate growth by investing in technology and enhancing our engineering capabilities to provide just what our customers need to meet current and future emissions requirements."
Tenneco will supply components (including catalytic converters) that make up the "hot end" of the exhaust system for the Ford F-150 light-duty truck (introduced at this year’s North American International Auto Show), Ford Expedition, Lincoln Navigator and the Ford Econoline vehicles. Tenneco currently supplies the "cold end" (mufflers and tailpipes) of the exhaust system for the Ford F-150, Ford Expedition and Lincoln Navigator, now making it a full-system supplier for those platforms. Tenneco was also awarded additional emission control content on the gasoline version of the F250/F350 Super-Duty in addition to what it already supplies on both the gasoline and diesel versions of the vehicles that launched in 2006.
For 2010 model-year, Tenneco will supply emission control components for some of Ford’s mid and upper mid-size passenger vehicle lines. This represents growth in the car segment with Ford Motor Company and supports Tenneco’s global strategy to increase passenger car business.
Tenneco referenced this new business in its third quarter 2007 earnings release last October, but was unable to name the customer at that time.
Tenneco’s Elkhart, Ind., Seward Neb., Cambridge, Ont., Ligonier, Ind., Marshall, MI. and Kansas City, MO. facilities will be involved in manufacturing components or final assembly. When fully launched, Tenneco estimates all these programs together will represent approximately a 2.5% increase in its value-added revenues compared to its 2007 value-added sales.
Tenneco is a strategic supplier to Ford as a member of the company’s Aligned Business Framework supplier group.
Tenneco’s global emissions operations include 48 emission control manufacturing facilities and four global engineering centers devoted to emission control engineering and advanced technology. The company’s engineering capabilities and broad range of emission control products and systems help vehicle manufacturers address increasingly stringent emissions and noise regulations, the drive for better fuel efficiency and the emission control demands of diesel and other alternative fuel and hybrid vehicles.
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. Words such as "anticipate," "expects," "will", "continue" 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) 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; (ii) 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; (iii) the general political, economic and competitive conditions in markets where the company and its subsidiaries operate; (iv) workforce factors such as strikes or labor interruptions; (v) material substitutions and increases in the costs of raw materials; (vi) 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; and (vii) 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.