Our company, Tenneco Inc., designs, manufactures and distributes highly engineered
products for both original equipment vehicle manufacturers (“OEMs”)
and the repair and replacement markets, or aftermarket, worldwide. We are one
of the world’s largest producers of clean air and ride performance products
and systems for light vehicle, commercial truck, off-highway and other vehicle
applications.
We were incorporated in Delaware in 1996. In 2005, we changed our name from
Tenneco Automotive Inc. to Tenneco Inc. The name Tenneco better represents the
expanding number of markets we serve through our commercial truck and off-highway
businesses. Building a stronger presence in these markets complements our core
businesses of supplying ride performance and clean air products and systems
to original equipment and aftermarket customers worldwide. Our common stock
is traded on the New York Stock Exchange (“NYSE”) and the Chicago
Stock Exchange under the symbol “TEN.”
We design, manufacture and sell clean air and ride performance systems and products
for light vehicle, commercial truck, off-highway and other applications. We
serve both original equipment manufacturers (OEMs) and replacement markets worldwide
through leading brands, including Monroe®, Rancho®, Clevite® Elastomers,
Axios™, Kinetic®, and Fric-Rot™ ride performance products and
Walker®, XNOx®, Fonos™, DynoMax® and Thrush® clean air
products.
As a parts supplier, we produce individual component parts for vehicles as well
as groups of components that are combined as modules or systems within vehicles.
These parts, modules and systems are sold globally to most leading OEMs, commercial
truck and off-highway engine manufacturers, and aftermarket distribution channels.
The parts industry for vehicles and engines is generally separated into two
categories: (1) “original equipment” or “OE” parts that
are sold in large quantities directly for use by manufacturers of light vehicles,
commercial trucks and off-highway engines; and (2) “aftermarket”
or replacement parts that are sold in varying quantities to wholesalers, retailers
and installers. In the OE category, parts suppliers are generally divided into
tiers — “Tier 1” suppliers that provide their products directly
to OEMs, and “Tier 2” or “Tier 3” suppliers that sell
their products principally to other suppliers for combination into those other
suppliers’ own product offerings.
“Light vehicles” are comprised of: (1) passenger cars and (2) light
trucks which include sport-utility vehicles (SUVs), crossover vehicles (CUVs),
pick-up trucks, vans and multi-purpose passenger vehicles. Demand for OE light
vehicle automotive parts is generally a function of the number of new vehicles
produced, which in turn depends on prevailing economic conditions and consumer
preferences. Although OE demand is tied to planned vehicle production, parts
suppliers also have the opportunity to grow revenues by increasing their product
content per vehicle, by further expanding business with existing customers and
by serving new customers in existing or new markets. Companies with a global
presence and advanced technology, engineering, manufacturing and support capabilities,
such as our company, are better positioned to take advantage of these opportunities.
Increasing vehicle emissions regulations are driving opportunities for increasing
clean air content of vehicles and engines. Additionally, the increase and expansion
in mandated diesel emission control and noise regulations or standards in North
America, Europe, China, Japan, Brazil, Russia, India and South Korea have enabled
suppliers such as us to serve customers beyond light vehicles. Certain parts
suppliers that have traditionally supplied the automotive industry also develop
and produce components and integrated systems for commercial truck, off-highway
and other applications, such as medium- and heavy-duty trucks, buses, stationary
engines, agricultural and construction equipment, locomotive and marine engines
and recreational two-wheelers and all-terrain vehicles. We foresee this diversification
of content and applications as a source of future growth.
Demand for aftermarket products is driven by general economic conditions, the
number of vehicles in operation, the age and distance driven of the vehicle
fleet, and the average useful life and quality of vehicle parts. Although more
vehicles are on the road than ever before, the aftermarket has experienced longer
replacement cycles due to the improved quality and increased average useful
life of vehicle parts that has come to pass as a result of technological innovation.
Parts suppliers are increasingly being required to deliver innovative aftermarket
products to drive increased aftermarket demand. Global economic downturns generally
impact aftermarket sales less adversely than OE sales, as customers forego new
vehicle purchases and keep their vehicles longer, thereby increasing demand
for repair and maintenance parts and services.
We have two of the most recognized brands in the industry: Monroe® used
for ride control products and Walker® for exhaust products. We differentiate
our products and their value proposition with our brands:
Monroe®, Kinetic®, Fric-Rot™, Gas-Matic®, Sensa-Trac®,
OESpectrum®, and Quick-Strut® for ride performance products,
Walker®, Fonos™, XNOx®, Mega-Flow®, Quiet-Flow®, and Tru-Fit®
for clean air products,
DynoMax® and Thrush® for performance clean air products,
Rancho® for suspension products for high performance light trucks, and
Clevite® Elastomers and Axios™ for noise, vibration and harshness
control components
4.81% 