Tenneco Inc. (TEN) has announced the opening of its first manufacturing plant in Osaka, Japan. The company plans to expand its business in the country with this facility and its engineering and manufacturing capabilities.
The Osaka plant will manufacture emission control systems for Kubota, which is one of the leading global manufacturers of engines and equipment for agricultural and industrial applications. The plant will also be manufacturing diesel after-treatment systems including diesel oxidation catalysts and diesel particulate filters for commercial vehicle applications over the period.
Tenneco, the leading maker of emission control and ride control systems, currently supports customers in North America, Europe, Brazil, China, India, South Korea and Japan to comply with the stringent emissions standards worldwide. Other than the Osaka plant, the company operates in Japan with technical center in Yokohama and offices in Nagoya and Hiroshima.
Tenneco plans to improve its capabilities in Japan along with providing the customers with the leading technologies, outstanding engineering support and cost-effective solutions. At present, the company provides emission control and ride control products to seven Japan-based light vehicle manufacturers.
Tenneco, in the second quarter of 2012, registered a 40% increase in profit (excluding special items) to $70 million or $1.14 per share from $50 million or 81 cents in the comparable quarter last year. The earnings per share also breezed past the Zacks Consensus Estimate by 17 cents.
Total revenues increased marginally to $1.92 billion, but failed to meet the Zacks Consensus Estimate of $2.04 billion. The year-over-year growth was attributable to a rise in production of light vehicles in North America and China along with higher commercial vehicle revenues around the world.
Tenneco, which competes with Meritor Inc. (MTOR), maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. Currently, we have a long-term Neutral recommendation on the stock.
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