Tenneco Business report FY2007
|(in million USD)||FY2007||FY2006||Rate of change||Factors|
|Sales||6,184||4,682||+32.0%||The growth of sales was driven primarily by volume ramp-ups on platform launches in North America, and higher OE net sales in Europe and Asia, more than offsetting lower aftermarket sales. In addition to the benefit of the new launches, the Company窶冱 geographic balance and diverse customer base helped offset the overall North American industry production decline.|
|EBIT||252||196||+28.6%||Global sales growth on OE platforms, benefits from the company's ongoing manufacturing efficiency programs, favorable currency and lower restructuring and aftermarket customer changeover costs more than offset higher material costs, reduced North American industry production volumes and softer global aftermarket conditions.|
-In August 2007, the Company announced that it signed an agreement to acquire the mobile emissions business of Combustion Components Associates, Inc. (CCA). The acquisition enhances its complete system integration capabilities for selective catalyst reduction (SCR) emissions control technologies designed to meet future more stringent diesel emissions regulations for passenger cars and trucks.
-In February 2007, the company of U.S. has announced at a press meeting in Tokyo that the company is focusing on growth with Japan-based carmakers, targeting a 32 percent increase in global revenue from them by 2008. The company aims to achieve this target by boosting the sales from the current level of 56 billion yen (2006) to 72 billion yen, through increased business with fast-growing automakers that are stepping up production. Tenneco will focus its marketing efforts on diesel aftertreatment technologies and electronic suspension systems, demand for which is expected to grow. Gregg Sherrill, the company's chairman and CEO, announced that Tenneco has been named a development supplier by a Japanese automaker on four different platforms to be produced globally, and it is currently working on developing shock absorbers and exhaust systems for these models.
-In May 2007, the Company announced that its Continuously Controlled Electronic Suspension (CES) system had been featured on the new Mercedes-Benz C- Class launched earlier in 2007. The electronically controlled suspension system continuously adjusts to road conditions and driver actions, resulting in enhanced ride comfort and improved stability.
-In October 2007, the Company announced that it was awarded its first development contract for a completely integrated selective catalyst reduction (SCR) diesel aftertreatment system featuring its recently acquired ELIM-NOx(TM) technology. The development contract is between its venture in Shanghai and a major Chinese commercial vehicle engine manufacturer. The ELIM-NOx(TM) system is designed to reduce Nitrogen Oxides (NOx) emissions by 70% to 90% using current SCR technology. The Company will work with the Chinese engine manufacturer to develop a complete SCR system with the ELIM-NOx injector system for truck and bus engines currently scheduled to launch in China in 2011.
-In September 2007, the Company announced a plan to close its Wissembourg (France), which produces emission control products for original equipment manufacturers.
-The Company estimates that its global original equipment sales will increase approximately 5.5 billion USD in 2008 and 6.0 billion USD in 2009. In addition, the Company projects to achieve an average compounded annual OE sales growth rate of 11% to 13% between 2008 and 2012, primarily driven by tightening emission control regulations globally.
|(In million USD)||2007||2006||2005|
-In May 2007, the Company opened its first research and development center in China. This engineering center -- a joint venture between Shanghai Tractor and Engine Company (STEC), a subsidiary of Shanghai Automotive Industry Corp. (SAIC) -- will focus on emission control product design and development for its growing OE and aftermarket businesses in China and the Asia-Pacific region.
-Theme of R&D: The Company works on developing a diesel particular filter to commercialize these applications in Europe and In North America. In addition, the Company supplies Volvo, Audi, Ford and Mercedes Benz with a computerized electronic suspension system that it co-developed with Ohlins Racing AB. As other examples, the Company is sponsoring funded University Research for advanced technologies for both emission control and ride control, and it is participating in the HyTRAN consortium in Europe for the development of practical fuel cell reformers and auxiliary power units.
|Europe, South America and India||74||51||54|
-In September 2007, the Company opened its second manufacturing facility in Russia, located in St. Petersburg. This facility is St. Petersburg's first emissions control manufacturing plant for original equipment manufacturers. Initially, the 5,000-square-meter facility will supply exhaust systems for Ford Motor Company.