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Tenneco Reports Fourth Quarter And Full-Year 2012 Financial Results

Capital expenditures in the quarter were $77 million versus $80 million a year ago, primarily to support customer programs and growth in China and the North America emission control business.


Tenneco reported total annual revenue of $7.363 billion, up from $7.205 billion in 2011. Excluding substrate sales and the impact of currency, revenue increased 7% to $5.938 billion versus $5.527 billion the prior year. Higher light vehicle production in North America, China and India, strong aftermarket sales in North America, and incremental revenue from commercial vehicle business drove record-high revenue despite lower OE volumes and aftermarket sales in Europe and South America. Total OE commercial and specialty vehicle revenue increased 22% year-over-year to $804 million.

The company reported net income of $275 million, or $4.50 per diluted share, compared with net income of $157 million, or $2.55 per diluted share a year ago. Adjusted for the items in the table below, net income rose to $203 million, or $3.32 per diluted share, compared with $163 million, or $2.66 per diluted share, a year ago.

For the year, Tenneco EBIT increased to $428 million from $379 million in 2011. Adjusted for the items below, EBIT was up 11% to $443 million versus $398 million a year ago. Earnings were driven by managing operational costs on higher year-over-year OE light vehicle volumes, efficient execution on the launch of commercial vehicle programs, and higher North American aftermarket volumes.


Adjusted 2012 and 2011 Results

(millions except per share amounts)   2012   2011
    Net income       Net income  
attributable to attributable to
EBITDA* EBIT Tenneco Inc. Per Share EBITDA* EBIT Tenneco Inc. Per Share
Earnings Measures $ 633 $ 428 $ 275 $ 4.50 $ 586 $ 379 $ 157 $ 2.55
Adjustments (reflects non-GAAP measures):
Restructuring and related expenses 13 13 8 0.14 8 8 5 0.09
Asset impairment charge - 7 7 0.11 - - - -
Pullman recoveries (5 ) (5 ) (3 ) (0.05 ) - - - -
Goodwill impairment charge - - - - 11 11 7 0.11
Costs related to refinancing - - 12 0.19 - - 1 0.01
Net tax adjustments - - (96 ) (1.57 ) - - (7 ) (0.10 )
Non-GAAP earnings measures $ 641   $ 443   $ 203   $ 3.32   $ 605 $ 398 $ 163   $ 2.66  
* EBITDA including noncontrolling interests (EBIT before depreciation and amortization)

In addition to the items set forth above, the tables at the end of this press release reconcile GAAP to non-GAAP results.


For the full year, the company reported the following EBIT as a percent of revenue and EBIT as a percent of value-add revenue (revenue excluding substrate sales).

2012 2011
EBIT as a percent of revenue 5.8% 5.3%
EBIT as a percent of value-add revenue 7.5% 6.9%
Adjusted EBIT as a percent of revenue 6.0% 5.5%
Adjusted EBIT as a percent of value-add revenue 7.8% 7.2%


For the full year 2012, the company generated $370 million in cash from operations compared with $245 million in 2011, driven by higher earnings and $54 million in working capital improvement. Total capital spending for the full year was $263 million.

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