Auto Service World
News   June 19, 2006   by Auto Service World

Changes at Tenneco

Tenneco Inc. announced today that the company has won new aftermarket business from 13 aftermarket customers in North America, expected to generate approximately $8 million in revenue annually.
Initial orders are expected to generate $4 million in revenue in the second quarter of 2006.
The company’s targeted sales efforts have established new long-term relationships with customers for its ride control, exhaust and brake products.
Tenneco expects to record charges associated with changing over these new customers of approximately $6 million in the second quarter of 2006.
Tenneco also announced that the company estimates it will record pre-tax restructuring and restructuring related charges of approximately $15 million for projects to improve the company’s distribution and manufacturing operations globally.
The company estimates it will record approximately $8 million of the charges during the second quarter of 2006 and an additional $7 million over the next four quarters. The company estimates these actions will result in annual savings of approximately $10 million when completed.
“We continue to generate top-line growth while reducing costs and improving our operational efficiency,” said Mark P. Frissora, chairman, CEO and president, Tenneco. “Our ongoing restructuring activities are driven by our successful Lean manufacturing and Six Sigma initiatives and our continuous efforts to optimize our global distribution and manufacturing footprint.”
The second quarter restructuring costs are for restructuring activities taking place at about 20 locations worldwide, aimed at improving efficiency, reducing costs and sizing operations to better reflect local market conditions.
The locations with the greatest impact have already been announced locally including headcount reductions at the company’s Adelaide, Australia operations to reflect lower OE production in Australia; consolidation at its Etain, France facility; closing of the Sterling Heights, Michigan just-in-time facility; discontinuation of the company’s Martorell, Spain just-in-time operations; consolidation and sale of the company’s Harrisonburg, Virginia aftermarket distribution center; and the continued integration of Tenneco’s recent acquisition of the Gabilan exhaust manufacturing company.
Tenneco is a $4.4 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 19,000 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.

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