Tenneco wins $200 million in new business contracts from Japanese vehicle manufacturers
A continued focus on growing its presence in Asian markets has paid off for Tenneco, Inc. The company recently announced that it won new business with Japanese original equipment manufacturers (OEMs) in 2007 worth approximately $200 million in annualized revenues. The new business includes contracts with five Japanese OEMs for vehicles launching between 2008 through 2010. According to Tenneco Chairman and CEO Gregg Sherrill, the company grew its total revenues with Japan based OEMs to a record high $583 million in 2007. Revenue from Japan based OEMs was 11 percent of Tenneco's global OE revenue in 2007 and 17 percent of North American OE revenue. "We are pleased to see the results of our continued focus on growing with the Japan-based OEMs and, equally important, we are diversifying within that market both in terms of customers and geographic locations," says Sherrill. "Our development and launch performance, advanced technology, and global engineering and manufacturing presence, particularly in fast growing markets like China and India, are fueling this rapid growth." • Approximately 20 percent of the new business is in the growing "BRIC" countries — Brazil, Russia, India and China — where customers are looking for global engineering and manufacturing capabilities and a well established presence. The new business also includes diesel aftertreatment business for an A/B segment car to be manufactured in India, reflecting Tenneco's ability to transfer its hot-end emission control capabilities globally. "This new business is further proof that Tenneco is strongly positioned across all of its product lines to provide OEM customers with the right solutions in the right places at the right times," Sherrill adds. "Our 2007 revenue growth and new business wins reflect Tenneco's commitment to building sustainable, long-term business relationships with our Japan-based customers," says Jeff Jarrell, vice president of Tenneco's Japan and Korea global OEM business. "We're confident that we will continue to expand our market share worldwide with Japan-based OEMs." Tenneco serves seven Japanese OEM customers in 14 countries. In Japan, the company continues a multi-million dollar upgrade of its engineering center in Yokohama and opened branch offices in Nagoya and Hiroshima this past year. The revenues associated with the new business announced today are reflected in the company's 2008 and 2009 global OE revenue estimates it provided in its fourth quarter and full-year 2007 earnings news release issued on Jan. 24, 2008. The company also included these revenues when, in the same news release, it projected Tenneco will achieve an average compounded annual OE revenue growth rate of 11 percent to 13 percent between 2008 and 2012. For more information about Tenneco, visit the company's Web site. |
