Tenneco Inc. Business Report FY ended Dec. 2019
|(in million USD)|
|FY ended Dec. 31, 2019||FY ended Dec. 31, 2018||Rate of change (%)||Factors|
|Net Income (Loss)||(220)||111||N/A||-|
|Sales by Division|
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2019 was USD 17,450 million, a 48.3% increase over the previous year. The primary factor for the increase was the effect of the Company’s Federal-Mogul acquisition over a full year, which increased sales by USD 5,600 million. Organic growth due to higher sales volume and improved product mix resulted in a USD 370 million increase in sales, which was partially offset by unfavorable foreign currency exchange effects, causing a decline of USD 310 million.
2) Clean Air segment sales
-In the fiscal year ended December 31, 2019, sales for the Company’s Clean Air division increased by 6.2% to USD 7,121 million. Increased sales volumes of light vehicles and commercial vehicles were partially offset by decreased sales from off-highway and other vehicles, resulting in a net increase of sales of USD 606 million. Negative currency translation effects decreased sales by USD 181 million in the segment.
3) Powertrain segment sales
-The Company’s Powertrain segment had sales of USD 4,408 million in the fiscal year ended December 31, 2019, an increase of USD 3,296 million or 296.4% over the previous year. The increase in sales was primarily due to the full year of operations in the segment from the Federal-Mogul acquisition in 2018.
4) Ride Performance segment sales
-Sales for the Company’s Ride Performance division in the fiscal year ended December 31, 2019 totaled USD 2,754 million, an increase of 27.3% over the previous year. The effect of a full year of operations from the Federal-Mogul acquisition was the primarily contributing factor in the segment’s increased sales. Excluding acquisition effects, the segment’s sales decreased by USD 96 million due to lower sales volumes and an unfavorable mix. Sales also decreased by USD 75 million due to negative foreign currency exchange effects.
5) Motorparts segment sales
-The Motorparts segment’s sales increased by 77.9% in the fiscal year ended December 31, 2019 to USD 3,167 million. The effect of a full year of operations of the acquisition of Federal-Mogul increased sales by USD 1,524 million. This gain was offset by a decrease of USD 132 million from lower sales volumes and unfavorable product mix and a decline of USD 42 million from negative foreign currency exchange effects.
-On January 10, 2019, the Company announced the completion of the acquisition of Ohlins Racing A.B., a Swedish technology company which develops and manufactures premium suspension systems and components for the automotive and motorsport industries. Ohlins Racing’s revenue over the previous 12 months totaled approximately USD 130 million. The Company acquired Ohlins Racing for USD 162 million. (From a press release on January 10, 2019)
DRiV Incorporated spin-off
-The Company announced that DRiV Incorporated will be the name of the future publicly traded Aftermarket and Ride Performance company following the Company’s separation into two independent, publicly traded companies. Following the acquisition and consolidation of Federal-Mogul in October 2018, the separation into two companies will be completed in the second half of 2019. After the spin-off, the remaining Compnay businesses will survive as a producer of chiefly powertrain and emissions products, with revenue of approximately USD 10.7 billion, and retain the Tenneco name. DRiV will serve as one of the largest global multi-line, multi-brand aftermarket suppliers and one of the largest global original equipment ride performance and braking suppliers to aftermarket, light vehicle, and commercial vehicle customers. DRiV’s original equipment business, encompassing 44% of the total sales volume and known as “Ride Performance,” will develop, manufacture and supply OEMs with shock absorbers, struts, NVH performance and brake friction materials. DRiV’s aftermarket business, encompassing 56% of the total volume and known as “Motorparts,” will develop, manufacture and distribute a broad portfolio of brands including Monroe, Ohlins, Walker, Clevite Elastomers, MOOG, Fel-Pro, Wagner, Ferodo, Champion, Thrush, National, Sealed Power and Axios. (From a press release on February 14, 2019)
In reporting its first quarter 2019 results, the Company also announced its revised timing for the spin-off of DRiV Inc. in order to provide more time for both companies to align and stabilize its processes and systems and improve their financial performance. The Company now expects the DRiV spin-off to occur in mid-2020. (From a press release on May 9, 2019)
-DRiV Inc., a business unit of the Company, announced that the 2020 Nissan Skyline 400R features an Intelligent Dynamic Suspension (IDS) system featuring its Continuously Variable Semi-Active (CVSAe) suspension technology. The CVSAe technology uses sensors to monitor road and driving conditions and feeds the information to individual shock absorbers in real time to compensate. (From a press release on December 4, 2019)
-The Company’s DRiV Inc., business unit announced that versions of the 2019 BMW 3 Series models with Adaptive M Suspension feature its Continuously Variable Semi-Active (CVSAe) intelligent suspension technology. The CVSAe technology senses road and driving conditions and adjusts damping levels in real time. Each shock absorber is connected to a central ECU that control damping settings based on the sensor’s readings. (From a press release on July 31, 2019)
-DRiV Inc., a business unit of the Company, announced that its Ohlins Dual Flow Valve adjustable suspension dampers are featured in the performance package of the Polestar 2 fully electric fastback. The dampers enable customization of chassis damping and ride quality based on road condition, driving style and other factors. (From a press release on July 9, 2019)
-The Company’s DRiV Inc. business unit announced that advanced suspension technology from its Monroe Intelligent Suspension portfolio is being supplied to the fifth-generation, 2020 Toyota GR Supra sports coupe. The Company’s Continuously Variable Semi-Active (CVSAe) suspension technology will be featured on the coupe, which will be available for sale in spring 2019. Each triple-tube shock features an externally mounted electronic CES8700 valve from Ohlins that connects to a central ECU that can realign damping settings every 10 milliseconds to achieve optimal ride comfort and control. The Company produces CVSAe suspension systems at its manufacturing facility in Ermua, Spain. (From a press release on May 17, 2019)
-The Company is supplying suspension components for the new Jaguar I-PACE all-electric luxury crossover SUV. The vehicle features the Company’s passive front and rear dampers and coil and air spring suspension modules, engineered to improve ride performance and stability. The Company will supply the vehicle’s suspension components and modules from its manufacturing facilities in Sint-Truiden, Belgium (front passive dampers); Hodkovice, Czech Republic (rear passive dampers and rear modules); and Birmingham, U.K. (front air & coil module assembly). Reducing overall vehicle weight is critical to the efficient operation of electric powertrains, which can be heavier compared to traditional combustion powertrains. The Company’s suspension modules include plastic spring seats, an aluminum top mount and other lightweight components that can help offset the weight of electric motors and batteries. (From a press release on March 6, 2019)
-The Company was named a 2018 GM Supplier of the Year. The Company’s Clean Air team was recognized for its exhaust system technologies, while the Elastomer NVH performance materials team received the award for its HydroMount cab suspension components. The awards marked the second consecutive year in which both the Company’s Clean Air and NVH performance materials team received the awards. It also was the third time within the last four years in which the NVH performance materials team received the award. (From a press release on May 30, 2019)
-The Company announced that its Powertrain segment received two 2019 Automotive News PACE Awards. One award was for the Company’s DuraForm-G91 diesel piston alloy, which enables the design of pistons with three to five times as much component durability compared to established materials in modern diesel engines. The increased strength also enables support of higher mechanical loads, thus enabling engines to operate at increased power with increased efficiency. The other award was for the Company’s PRiME 3D software, a simulation tool that can reduce engine development time by up to 70% while reducing emissions and fuel consumption through early piston and piston ring design optimization. PRiME 3D generates a virtual running engine model during the design process, enabling the accurate prediction of cylinder performance and powertrain characteristics. (From a press release on April 9, 2019)
-The Company’s expects that its net sales for the fiscal year ending December 31, 2020 will be between USD 16.7 and 17.1 billion.
|(in million USD)|
|FY ended Dec. 31, 2019||FY ended Dec. 31, 2018||FY ended Dec. 31, 2017|
-The Company’s investment into engineering, research and development increased by 62.0% in the fiscal year ended December 31, 2019 over the previous year, due to the previous acquisition of Federal-Mogul.
-As of December 31, 2019, the Company has a total of 45 engineering and technical facilities. The Clean Air segment operates seven facilities, the Powertrain segment operates 14 facilities, the Ride Performance segment operates 19 facilities and the Motorparts segment operates 5 facilities.
-The Company’s DRiV Inc., business unit have allied with several partners to receive a grant for the development and evaluation of advanced wheel-corner concepts for autonomous vehicles. DRiV will work with Arrival ltd., a London technology company which designs and manufactures Generation 2.0 electric vehicles, along with several universities and industrial organizations in Project OWHEEL. The project will develop and benchmark performance of four next-generation wheel-corner concepts: passive corner with stationary wheel positioning, passive composite corner, active corner with conventional ride dynamics control, and active corner with integrated wheel positioning control. (From a press release on December 11, 2019)
Coatings for PermaTorque MLS multi-layered steel head gaskets
-The Company’s DRiV Automotive Inc., business unit has developed the next generation of proprietary coatings for its popular PermaTorque MLS multi-layered steel head gaskets. This next generation coating has been designed to help adapt to higher temperature engine environments, as Fel-Pro engineers continue to develop sealing technology specifically designed for the repair environment. Created to help seal imperfect surfaces, the Fel-Pro PermaTorque MLS head gaskets are equipped with a proprietary NextGen coating that resists scrubbing and compensates for surface finishes as rough as 80 Ra, creating a reliable seal. These gaskets also feature LaserWeld™ exclusive stopper layer technology, which prevents gasket damage and helps ensure a superior combustion seal. (From a press release on November 5, 2019)
Monroe RideRefine SDD tunable add-on valves
-The Company’s DRiV Inc. business unit introduced a family of advanced, highly-tunable add-on valves for OE manufacturers, that bring best-in-class comfort to passive dampers used in a wide range of passenger vehicle applications. The cost-effective new Monroe RideRefine SDD (stroke dependent damping) valve technology works with a damper's main valve to provide refined, luxury-level ride characteristics across a range of driving conditions. A bypass on the main valve directs oil into the Monroe RideRefine SDD valve, which provides separate, tunable damping of small strokes for reduced vibration and harshness. (From a press release on September 17, 2019)
Technologies showcased at 2019 Auto Shanghai
-The Company will showcase its latest engine and exhaust system solutions at the 2019 Auto Shanghai, which will include the following:
- Megabond Cylinder Liner: Debuting at Auto Shanghai, the advanced liner technology provides improved mechanical bonding strength and robustness.
- PRiME 3D simulation software: PRiME 3D is a simulation tool that reduces engine development time by generating a virtual model of a running engine during the design process. It can predict component performance and characteristics, thus reducing design and prototyping iterations.
- Vehicle hybridization technologies: The Company will showcase CPT SpeedStart, an advanced starter-generator for micro and mild hybrid applications; the Cobra electric supercharger; and the Tigers turbogenerator integrated exhaust gas energy recovery system.
- IROX 2 polymer engine bearings: The IROX 2 bearings are for light and heavy-duty engines and have coating technologies that make them effective in hybrid and start/stop applications.
- Emission reduction systems: The Company showed its gasoline particulate filter, fabricated air gap manifolds and cold start thermal units.
- Fuel economy systems: The Company showed its exhaust gas heat recovery system and lightweight exhaust system.
- Hybridization systems: The Company showcased a Compact Emissions Module which highlights the size constraints of hybrid powertrains. It also showcased Smart Sound, a speaker-based system for exhaust tuning; modular electronic valves and passive valves.
(From a press release on April 11, 2019)
|(in million USD)|
|FY ended Dec. 31, 2019||FY ended Dec. 31, 2018||FY ended Dec. 31, 2017|
-The Company’s capital expenditures are primarily used for investments in new facilities, upgrading existing products, continuing new product launches, and improving and acquiring infrastructure and equipment.
-In the fiscal year ending December 31, 2020, the Company expects to invest between USD 610 and 650 million in capital expenditures.