Tenneco Inc. reported a first quarter net loss of $49 million U.S., or $1.05 per diluted share, compared with net income of $6 million U.S., or 13-cents per diluted share in first quarter 2008. Adjusted for the items below, the net loss was $29 million U.S., or 61-cents per diluted share, compared with adjusted net income of $10 million, or 20-cents per diluted share a year ago.
EBIT (earnings before interest, taxes and noncontrolling interests) was a loss of $13 million U.S., versus EBIT of $39 million U.S. the previous year. Adjusted EBIT was a loss of $10 million U.S., versus adjusted EBIT of $43 million a year ago. EBIT was negatively impacted by significantly lower OE production volumes worldwide and manufacturing fixed cost absorption related to those volume declines, which together reduced EBIT by $100 million U.S. in the quarter. EBIT was also negatively impacted by $13 million U.S. related to unfavorable currency exchange rates compared to a year ago.
The company partially offset the negative EBIT drivers with lower SGA&E spending, execution on restructuring actions, manufacturing efficiency improvements and customer recoveries.
EBITDA including noncontrolling interests (EBIT before depreciation and amortization) was $39 million U.S. compared with EBITDA of $94 million U.S. in first quarter 2008. Adjusted EBITDA including noncontrolling interests was $41 million U.S., versus $98 million the prior year.
“This was a very challenging quarter as production volumes continued to decline to extremely low levels with no region of the world unaffected,” said Gregg Sherrill, chairman and CEO, Tenneco. “However, restructuring actions and our employees’ concerted efforts to aggressively reduce costs and generate cash were instrumental in helping to offset the impact of this severe industry downturn.”