Tenneco reports lower Q1 earnings as it prepares for sale
Tenneco is in the process of being purchased by Apollo in a $1.6 billion deal projected to close in the second half of 2022. Because of the pending sale, Tenneco did not host a conference call with investors.
“In the face of continuing inflationary pressures, supply chain disruptions and lower volumes, the Tenneco team delivered a solid Q1 performance,” CEO Brian Kesseler said in the statement. “Our global teams are focused and continue to pull together to manage those challenges, while also working on the necessary steps to complete the pending transaction with Apollo later this year.”
The sale to Apollo comes after Tenneco acquired parts supplier Federal-Mogul in 2018 for $5.4 billion. Tenneco struggled to manage its debt following the acquisition, which ultimately led to the company cutting revenue forecasts three times in 2019 and the resignation of then-CEO Roger Wood in early 2020.
Tenneco’s shares fell 1.4 percent to $15.86 in afternoon trading.
Tenneco ranks No. 15 on the Automotive News list of the top 100 global suppliers, with an estimated $12.65 billion in parts sales to automakers in 2020.