Tenneco to close 2 plants amid ride control restructuring
Ride control and emissions systems supplier Tenneco Inc. said it will close plants in Ontario and Hartwell, Ga., as it restructures its North American ride control operations.
The supplier expects to begin transferring work to its ride control facility in Kettering, Ohio, this year, the company said in a statement on Friday. Complete closure of the two plants is expected near the end of the second quarter of 2020.
A Tenneco spokesman told Automotive Newsthe closures were not prompted by any loss of automaker contracts.
Both plants have around 500 employees and are roughly the same size. Therefore, approximately 1,000 jobs are affected by the closures, the spokesman said.
Tenneco on Oct. 1 finalized its acquisition of longtime rival supplier Federal-Mogul Inc. It plans to release the value of the deal within the next several weeks, the spokesman said.
Shareholders approved proposals needed for the companys multibillion dollar acquisition of Federal-Mogul from billionaire investor Carl Icahn, the company said in September.
The acquisition will expand Tennecos product portfolio and accelerate a split into two publicly traded companies — an aftermarket and ride performance unit and a powertrain company. The spin-off is expected to be completed in late 2019, Tenneco said in October.
In a separate announcement, the supplier said its adjusted net income for the third quarter remained mostly flat at $88 million. On a per-share basis, adjusted net income improved by 13 cents to $1.70.
The Chicago suppliers unadjusted third-quarter net income fell 28 percent to $60 million, compared with the third quarter of 2017.
Revenue for the quarter grew 4 percent to $2.37 billion, driven by increases in both its clean-air and ride performance units, and a 23 percent surge in commercial truck and off-highway revenue.
The clean-air divisions revenue grew 6 percent to $1.6 billion, while its ride performance arms total revenue rose 5 percent.
Tenneco said it expects the deal to tack on $1.9 billion in additional revenue in the fourth quarter, and push up full-year revenue to approximately $11.8 billion.
The supplier ranks No. 32 on the Automotive Newslist of the top 100 global suppliers, with worldwide sales to automakers of $8.02 billion in 2017. Federal-Mogul generated $5.65 billion in revenue from automakers last year.