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TENNECO Tenneco Reports Third Quarter 2021 Results November 05 , 2021 Solid performance in a challenging supply chain environment LAKE FOREST , III . , Nov. 5 , 2021 / PRNewswire / -- Tenneco ( NYSE : TEN ) today announced results for the third quarter ended September 30 , 2021 , including the following : Third Quarter 2021 Summary SOUD PERFORMANCE ina challenging supply chainenvironment $ 4.3B NA Mandere rowth D $ 125M . $ 279M . Terveyeweaponry acons that were not repre yanet nabrid cod aton due to tigofrecversand volumes inficended by Tape The more maro y Acceertestual caste MEVE $ 3.3B Continued Progress or Strategic Growth rivers uning 18 septeme in with ved broncs advanced suspension technology in Rivon Tu vnd son in the all21lectrik model from fee a TENWECO B made to the p titution in regions and • Tenneco posted higher third quarter total revenue of $ 4.3 billion , up 2 % versus prior year . Value - add revenue for the third quarter 2021 was $ 3.3 billion , 2 % lower year - over - year excluding favorable currency impact of $ 53 million . Tenneco's revenue performance in the quarter strongly outpaced industry light vehicle production , which declined 20 % versus last year , driven by our diversified end market mix . The Company reported net earnings for the third quarter 2021 of $ 15 million , or $ 0.17 per diluted share , compared with a net loss in prior year of $ 499 million , or $ ( 6.12 ) per diluted share . • Third quarter EBIT * was $ 125 million versus $ 236 million in the prior year , and EBIT as a percent of revenue decreased 260 basis points to 2.9 % versus 5.5 % in the prior year . • Adjusted EBITDA ** was $ 279 million , versus $ 388 million a year ago . Adjusted EBITDA as a percent of value - add revenue was 8.5 % , versus 11.8 % last year . The year over - year margin decline was attributable to temporary cost actions in 2020 that were not repeated this year and net material cost inflation due to timing of recoveries . Volume related inefficiencies caused by the continued semiconductor shortage were more than offset by Accelerate + structural cost improvements . • Third quarter operating cash flow was a use of $ 48 million , primarily due to higher inventory levels resulting from volatile production schedules , and year to date free cash flow for debt service was roughly neutral . Higher LTM earnings resulted in a 1.1x improvement in the Company's net leverage ratio *** compared to December 31 , 2020 . " Our third quarter results demonstrate the scale and diversification in our regions and markets served and our ability to actively manage costs . Actions taken during the quarter helped mitigate the effects of the volatile light vehicle production environment driven by the semiconductor shortage along with inflationary pressures and other pandemic - related challenges , " said Brian Kesseler , Tenneco's chief executive officer . " We appreciate the ongoing efforts of our global team members who remain focused on business - critical priorities during these extraordinary times . " Outlook For 2021 , Tenneco has updated its full year guidance ranges . FY2021 Current Outlook Revenue $ 17.75-17.85B Value - Add Revenue $ 13.55 - 13.65B Adjusted EBITDA ** $ 1.25 -1.28B Net Debt ( 1 ) - $ 4.3B ( 1 ) Total debt net of total cash balances " Building upon our Accelerate + structural cost savings program , we are initiating additional cost reduction actions to better flex our capacity to align with the current market conditions , which we expect will carry into 2022 , " added Kesseler . " Tenneco's mid and long - term prospects remain strong as we continue our disciplined focus on cost reduction , cash generation and investment in our strategic growth drivers . We are well positioned to benefit from the eventual recovery of light vehicle production volumes . " FY2021 Prior Outlook Revenue Value - Add Revenue Adjusted EBITDA ** Net Debt ( 1 ) * EBIT : Earnings before interest expense , income taxes and noncontrolling interests . ** Adjusted EBITDA : Adjusted earnings before interest expense , income taxes , noncontrolling interests , and depreciation and amortization . *** Net leverage ratio : Ratio of debt net of total cash balances to adjusted LTM EBITDA including noncontrolling interests . Earnings Conference Call Details The Company will host a webcast conference call on Friday , November 5 , 2021 at 9:30 a.m. ET . The purpose of the call is to discuss the Company's financial results for the third quarter 2021 , as well as to provide other information regarding the company's outlook . $ 18.3-18.6B $ 13.8-14.1B $ 1.36 – 1.44B < $ 4.2B A live " listen only " webcast and presentation materials will be available on the investor section of the company's website at https://investors.tenneco.com . An archive of the webcast will be available approximately one hour after conclusion of the call for one year . Telephone participants are encouraged to pre - register for the conference call using the following link : https://dpregister.com/sreg/10161052/ee7271b14c Attachment 1 Statements of Income ( Loss ) - 3 months Statements of Income ( Loss ) - 9 months Balance Sheets Callers who pre - register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator . Participants may pre register at any time , including up to and after the call start time . Statements of Cash Flows - 3 Months Statements of Cash Flows - 9 Months Those without internet access or unable to pre - register may dial in , using the passcode " Tenneco Inc. " PARTICIPANT DIAL IN ( TOLL FREE ) : 1-833-366-1121 PARTICIPANT INTERNATIONAL DIAL IN : 1-412-902-6733 Attachment 2 Reconciliation of GAAP to Non - GAAP Earnings Measures - 3 Months Reconciliation of GAAP to Non - GAAP Earnings Measures - 9 Months Reconciliation of GAAP Revenue and Earnings to Non - GAAP Revenue and Earnings Measures - 3 and 9 Months Reconciliation of GAAP Revenue to Non - GAAP Revenue Measures - 3 and 9 Months Reconciliation of Non - GAAP Measures - Debt Net of Total Cash / Adjusted LTM EBITDA including noncontrolling interests Reconciliation of GAAP to Non - GAAP Revenue Measures - Original Equipment , Original Equipment Service and Aftermarket Revenue - 3 and 9 Months About Tenneco Tenneco is one of the world's leading designers , manufacturers , and marketers of automotive products for original equipment and aftermarket customers , with full year 2020 revenues of $ 15.4 billion and approximately 73,000 team members working at more than 270 sites worldwide . Through our four business groups , Motorparts , Performance Solutions , Clean Air and Powertrain , Tenneco is driving advancements in global mobility by delivering technology solutions for diversified global markets , including light vehicle , commercial truck , off - highway , industrial , motorsport and the aftermarket . Visit www.tenneco.com to learn more . Investors and others should note that Tenneco routinely posts important information on its website and considers the Investor section , www.investors.tenneco.com , a channel of distribution . About Guidance Revenue estimates and other forecasted information in this release are based on OE manufacturers ' programs that have been formally awarded to the company ; programs where Tenneco is highly confident that it will be awarded business based on informal customer indications consistent with past practices ; and Tenneco's status as supplier for the existing program and its relationship with the customer . This information is also based on anticipated vehicle production levels and pricing , including precious metals pricing and the impact of material cost changes . Unless otherwise indicated , our methodology does not attempt to forecast currency fluctuations , and accordingly , reflects constant currency . Certain elements of the restructuring and related expenses , legal settlements , substrate pricing , and other unusual charges we incur from time to time cannot be forecasted accurately . In this respect , we are not able to forecast corresponding GAAP measures without unreasonable efforts on account of these factors and other factors not in our control . Safe Harbor