Tenneco to close 2 plants amid ride control restructuring

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Tenneco, supplier of driving movements and emission systems, said it has installations in Ontario and Hartwell, Georgia. Will close because it restructures its North American trip control activities.

The supplier expects to start transferring work to his driving control facility in Kettering, Ohio, this year the company said in a statement on Friday. The complete closure of the two factories is expected by the end of the second quarter of 2020.

A Tenneco spokesperson told Automotive News that the closures were not motivated by the loss of automaker contracts.

Both factories have about 500 employees and are about the same size. That is why about 1,000 jobs have been hit by the closures, the spokesman said.

Big acquisition

Tenneco finalized the acquisition of long-term rival supplier Federal-Mogul Inc. on October 1st. The plan is to release the value of the deal within a few weeks, according to the spokesman.

Shareholders approved proposals needed for the billion-dollar investment of Federal-Mogul by millionaire investor Carl Icahn, according to the company in September.

The acquisition will expand Tenneco's product portfolio and accelerate a split into two listed companies – an aftermarket and ride-performance unit and a powertrain company. The spin-off is expected to be completed by the end of 2019, Tenneco said in October.

Flat income

In a separate announcement, the supplier said that the adjusted net result for the third quarter remained largely flat at $ 88 million. Per share the adjusted net result increased by 13 cents to $ 1.70.

The unadjusted net result for the third quarter in Chicago fell by 28 percent to $ 60 million compared to the third quarter of 2017.

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Sales for the quarter grew by 4 percent to $ 2.37 billion, driven by increases in both clean air and ride performance units, and a 23 percent increase in commercial truck and off-highway revenues.

Turnover of the clean-air division grew by 6 percent to $ 1.6 billion, while the total turnover of the ride-performance arm rose by 5 percent.

Tenneco said it expects the deal to reach $ 1.9 billion in additional revenues in the fourth quarter and drive sales for the year to about $ 11.8 billion.

The supplier is numbered 32 on the Automotive News list of the 100 largest suppliers worldwide, with worldwide sales to car manufacturers of $ 8.02 billion in 2017. Federal-Mogul generated $ 5.65 billion in revenues from car manufacturers last year.