Tenneco Inc.’s share price grew by over 14% after it announced that it has strong quarterly adjusted profits. The emission- and ride-control parts maker had said that it will keep its losses in Europe because of slow auto sales in the region. Tenneco's third-quarter adjusted profit was $52 million (excluding one-time items), or 85 cents per diluted share, compared to $42 million, or 67 cents per diluted share.
Thomson Reuters said that its profit, which excludes one-time items of 85 cents, surpassed analyst expectations of 75 cents per diluted share. Tenneco shares closed the day up 14.4% at $30.65.
In a statement, Tenneco said that it continues to have a strong customer and platform position but it expects a lower year-over-year revenue decline for Europe, for its new-vehicle business as well as for the aftermarket.
Tenneco's revenue in the third quarter was essentially flat, at $1.778 billion from $1.773 billion the previous year. In addition, Tenneco said that it believes that its fourth-quarter auto industry production in North America and China will be stronger compared with last year. However, the decline in Europe is expected to persist.