Tenneco 2Q profit rise on higher sales

Lake Forest-based Auto parts maker Tenneco Inc. said Friday that its second-quarter profit rose 25 percent on a jump in sales, boosted by the continued recovery of the automotive industry.

The results easily beat Wall Street predictions. Tenneco shares rose $1.37, or 3.4 percent, to $41.36 in premarket trading.

Tenneco, which makes systems that reduce vehicle emissions, earned $50 million, or 81 cents per share, up from $40 million, or 66 cents per share, for the same quarter in 2010.

The recent quarter's results included offsetting restructuring expenses and tax adjustments of 2 cents per share each. Excluding tax adjustments, restructuring and refinancing costs, the company posted an adjusted profit of 62 cents per share for the 2010 quarter.

Sales rose 26 percent to $1.89 billion from $1.5 billion.

Analysts, on average, expected a profit of 76 cents per share on $1.75 billion in revenue, according to a FactSet survey.

Tenneco credited the sales improvement to increases in car and truck production, the launch of new commercial vehicle emissions-control programs, and higher global aftermarket sales.

The company estimated that it lost about $60 million in revenue as a result of the March earthquake and tsunami in Japan. Favorable exchange rates boosted revenue by $118 million.

Tenneco said it expects light-vehicle production to continue to increase around the world during the third quarter. In addition, the company said it continues to launch commercial-vehicle emission-control programs designed to help customers meet stricter diesel emissions