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Tenneco Receives $65 Million In Contracts

Auto parts supplier said Monday it received $65 million in new-business contracts with Japanese original-equipment manufacturers in 2008.

LAKE FOREST, Ill. (AP) -- Auto-parts supplier Tenneco Inc., which develops emission control and ride-control products, said Monday it received $65 million in new-business contracts with Japanese original-equipment manufacturers in 2008.

The deals include contracts with four Japanese manufacturers, and allow Tenneco to supply parts to 13 different vehicle platforms in nine countries.

Despite the new business, Tenneco continues to struggle as global demand for vehicles falls. The Lake Forest, Ill., company reported a fourth-quarter loss of $298 million, or $6.40 per share, last month, compared with a loss of $72 million, or $1.57 per share, a year earlier. Sales fell 23 percent to $1.21 billion from $1.57 billion.

Tenneco said it would reduce capital expenditures in 2009 by 28 percent from $160 million last year. Plans include cutting 1,100 jobs, closing three factories and one engineering facility, reducing compensation and benefit costs and cutting other expenditures.

Fitch Ratings and Moody's Investors Service recently lowered ratings on Tenneco, pushing it deeper into junk status.

Shares of Tenneco, rose 1 cent to 87 cents in early trading.