In 2014, Tenneco expects total OE revenues in the range of $7.2 billion to $7.7 billion including commercial vehicle revenue of $1.3 billion to $1.6 billion. The increase will be driven by the anticipated further improvement in macroeconomic conditions globally resulting in stronger light and commercial vehicle volumes. Additionally, the company expects to benefit from significant incremental commercial vehicle content as U.S. Tier 4 final, Europe Stage 4 off-road and Euro VI on-road emissions regulations take effect.
“Our excellent position in light vehicle markets globally and our strong book of commercial vehicle business will drive revenue growth in 2013 in the face of macroeconomic conditions that continue to negatively impact production volumes, particularly early in the year, “ said Gregg Sherrill, chairman and CEO, Tenneco. “In 2014, we expect both the light and commercial vehicle production environments to strengthen, and with significant incremental commercial vehicle regulatory content, we are well-positioned to enjoy a year of high revenue growth. Additionally, our strong global aftermarket should continue to contribute stable revenues throughout this period.”
|Additional guidance for 2013:|
|Capital expenditures are expected to be $260 million to $270 million|
|Annual interest expense is expected to be about $80 million|
|Cash taxes are expected to be between $90 million and $100 million|
Tenneco is providing its financial guidance in advance of hosting an investor meeting in New York on February 14, 2013, beginning at 1:30 pm Eastern time. Senior management will review the company’s revenue guidance, strategy and business operations. The webcast can be accessed by going to the financial/investor section of the company’s website at www.tenneco.com.
REVENUE ASSUMPTIONSRevenue estimates in this release are based on OE manufacturers’ programs that have been formally awarded to the company; programs where Tenneco is highly confident that it will be awarded business based on informal customer indications consistent with past practices; Tenneco’s status as supplier for the existing program and its relationship with the customer; and the actual original equipment revenues achieved by the company for each of the last several years compared to the amount of those revenues that the company estimated it would generate at the beginning of each year. These revenue estimates are also based on anticipated vehicle production levels and pricing, including precious metals pricing and the impact of material cost changes. Currency is assumed to be constant at $1.27 per Euro throughout the entire period. For certain additional assumptions upon which these estimates are based, see the slides accompanying the February 14, 2013 webcast, which will be available on the financial section of the Tenneco website at www.tenneco.com. Tenneco is a $7.4 billion global manufacturing company with headquarters in Lake Forest, Illinois and more than 24,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of emission control and ride control products and systems for automotive and commercial vehicle original equipment markets and the aftermarket. Tenneco markets its products principally under the Monroe®, Walker® and Clevite®Elastomer brand names.