Tenneco Inc. (TEN): history, ownership, mission, how it works & makes money

A Brief History of Tenneco Inc. (TEN)

Foundation and Early Years

Tenneco Inc. was founded in 1960 as Tennessee Gas Transmission Company. The original focus was on natural gas transportation and related operations. In 1969, the company changed its name to Tenneco, Inc. as it diversified into other sectors, particularly in manufacturing.

Major Acquisitions

Throughout the 1980s and 1990s, Tenneco expanded significantly via acquisitions. Key acquisitions during this period included:

• Acquisition of the automotive parts division of the Ford Motor Company in 1987 for approximately $1.8 billion.
• Purchase of the Walker Exhaust Systems in 1990, enhancing its position in the exhaust systems market.
• In 1999, Tenneco acquired the automotive business of Celeron Corporation for $300 million.

Divestitures and Strategic Shifts

In the early 2000s, Tenneco underwent a series of divestitures to streamline operations. The company sold off its packaging operations in 2004 for $2.1 billion and focused primarily on automotive and environmental products.

Financial Performance in Recent Years

For the fiscal year 2022, Tenneco reported revenues of $18.5 billion. The company’s net income for the same year was approximately $705 million, reflecting ongoing efforts to improve operational efficiency.

Recent Developments

In January 2023, Tenneco announced a strategic partnership with the electric vehicle startup, Canoo. This collaboration aims to develop innovative technologies for electric vehicles. The market capitalization of Tenneco, as of October 2023, was around $3.5 billion.

Business Segments

Tenneco operates through four primary business segments:

Global Presence

Tenneco has a significant global footprint, with over 80 manufacturing locations across 24 countries. The company employs approximately 75,000 people worldwide, underscoring its extensive reach in the automotive industry.

Market Trends and Innovations

In light of the ongoing shift towards electric vehicles, Tenneco has invested heavily in R&D, allocating approximately $300 million annually towards the development of sustainable technologies and products.

Conclusion

Tenneco continues to navigate the evolving automotive landscape by focusing on sustainability and innovative engineering solutions.

A Who Owns Tenneco Inc. (TEN)

Shareholder Composition

Tenneco Inc. (TEN) is publicly traded on the New York Stock Exchange. As of the latest available data, the company's shareholder composition reflects a mix of institutional and retail investors, with the following breakdown:

Top Institutional Shareholders

The major institutional shareholders of Tenneco Inc. include prominent investment firms. The following table details the top five institutional shareholders and their respective ownership percentages:

Recent Financial Performance

In the most recent fiscal quarter, Tenneco reported the following financial metrics:

Recent Stock Performance

The stock performance of Tenneco Inc. is as follows:

Management Team

The management team of Tenneco plays a crucial role in the company's operational strategy. Key executives include:

• CEO: Brian Kesseler
• CFO: J. Michael McGarry
• COO: Kevin B. Fagan
• Chief Technology Officer: James W. Hurst
• Chief Marketing Officer: Emily H. Lutz

Future Ownership Trends

The trends in ownership for Tenneco indicate a rising interest among institutional investors, particularly in the automotive and industrial sectors:

Tenneco Inc. (TEN) Mission Statement

Corporate Overview

Tenneco Inc. (NYSE: TEN) is a global supplier of clean and efficient products and solutions for the automotive and commercial vehicle markets. Founded in 1940, Tenneco has a presence in over 27 countries with approximately 78 manufacturing facilities worldwide. The company focuses on providing sustainable solutions to reduce emissions and improve vehicle performance.

Mission Statement

The mission statement of Tenneco Inc. emphasizes the commitment to delivering high-quality products while minimizing environmental impact. It states: "We are a global leader in the aftermarket and original equipment markets, committed to delivering innovative solutions that enhance vehicle performance and reduce environmental impact."

Core Values

• Integrity: Maintaining honesty and accountability in all dealings.
• Customer Focus: Prioritizing the needs and expectations of customers.
• Innovation: Driving continuous improvement in processes and products.
• Collaboration: Working together across functions to achieve shared goals.
• Sustainability: Committing to environmentally responsible practices.

Financial Performance

As of FY 2022, Tenneco reported revenues of approximately $17.4 billion. The company's operating income was around $628 million, and net income stood at $305 million.

Market Position

Tenneco operates within various segments, including Clean Air, Powertrain, and Ride Performance. The Clean Air segment generates approximately 60% of the company’s total revenue, focusing on exhaust and emissions control technologies. The Powertrain segment contributes about 25%, specializing in engine performance products, while Ride Performance accounts for the remaining 15%.

Strategic Initiatives

Tenneco's strategic focus includes:

• Investing in research and development to enhance product innovation.
• Improving manufacturing capabilities through automation and digitalization.
• Expanding partnerships with major automotive manufacturers to develop advanced technologies.
• Pursuing sustainability initiatives to achieve carbon neutrality by 2035.

Recent Developments

As of 2023, Tenneco has launched several initiatives aimed at enhancing its market position, including:

• Introduction of new electric vehicle (EV) components to cater to the growing EV market.
• Collaboration with leading automotive firms to innovate emission reduction technologies.
• Implementation of sustainability goals aligned with the UN Sustainable Development Goals.

Conclusion

While no conclusion will be drawn, it is evident that Tenneco Inc. remains dedicated to its mission, actively pursuing growth through innovation and sustainability in an evolving automotive landscape.

How Tenneco Inc. (TEN) Works

Business Overview

Tenneco Inc. (NYSE: TEN) is a global supplier of clean air and ride performance products. The company operates in two primary segments: Clean Air and Ride Performance. As of 2021, Tenneco generated approximately $17.2 billion in revenue.

Financial Performance

For the fiscal year 2022, Tenneco reported a revenue of $18.6 billion, an increase from the $16.1 billion reported in 2021.

Market Segments

Tenneco's operations are segmented into:

• Clean Air: Focuses on emissions control technologies.
• Ride Performance: Provides suspension and dampening products.

Operational Structure

Tenneco operates a global network of manufacturing facilities, with over 80 production plants worldwide. Countries include:

• United States
• Germany
• China
• Mexico
• Brazil

Workforce and Employment

As of 2022, Tenneco employed approximately 74,000 individuals globally.

Research and Development

Tenneco invests approximately 3.5% of its annual revenue into research and development to innovate and enhance product offerings, especially in electric vehicle (EV) technologies and sustainable solutions.

Key Products

The key products offered by Tenneco include:

• Exhaust systems
• Suspension products
• Shock absorbers
• Emission control technologies

Strategic Partnerships

Tenneco has established collaborations with major automotive manufacturers, including:

• General Motors
• Ford
• Volkswagen
• BMW

Financial Outlook

The company's forward-looking statements estimate revenue growth at an average rate of 4% to 6% per year over the next five years.

Recent Acquisitions

In 2022, Tenneco acquired the remaining 49% stake in a joint venture with a leading global technology firm focused on advanced exhaust systems, further enhancing its market position.

Sustainability Initiatives

Tenneco has committed to reducing its greenhouse gas emissions by 30% by 2030 as part of its sustainability strategy, focusing on cleaner manufacturing processes.

Global Presence

The company has a significant global footprint, with operations in over 30 countries, catering to a diverse customer base across automotive, commercial, and industrial markets.

How Tenneco Inc. (TEN) Makes Money

Business Overview

Tenneco Inc. operates as a global automotive components company, focusing on both original equipment and aftermarket sectors. The company reports its financial performance through two main segments: the Clean Air and Ride Performance segments.

Revenue Breakdown

Clean Air Segment

The Clean Air segment focuses on emission control technologies, including exhaust systems. Tenneco aims to meet increasingly stringent global emissions regulations, which influences their product offerings and revenue streams.

• Key Products: Emission control systems, catalytic converters, and diesel after-treatment systems.
• Major Clients: Leading automotive manufacturers including Ford, General Motors, and BMW.
• Market Trends: Increasing demand for electric vehicles (EVs) and hybrid models, driving innovation in clean air technologies.

Ride Performance Segment

In the Ride Performance segment, Tenneco provides suspension products and systems to enhance vehicle comfort and control. This segment also serves both OEM and aftermarket customers.

• Key Products: Shock absorbers, struts, and other suspension components.
• Major Clients: Suppliers of light and heavy-duty vehicles, including Daimler and Volkswagen.
• Market Trends: Growing focus on vehicle safety and comfort features.

Financial Performance

For the fiscal year ended December 31, 2022, Tenneco reported net income of $85 million compared to a net income of $162 million in 2021. The net sales growth in 2022 was driven by increased vehicle production and pricing strategies.

Cost Structure

Tenneco’s operating expenses consist of both fixed and variable costs, including materials, labor, and overhead. In 2022, the cost of goods sold (COGS) was approximately $5.16 billion.

Market Position and Competitive Advantage

Tenneco holds a significant position in the automotive components market, benefiting from a diversified product portfolio. The company invests in R&D to remain competitive, allocating approximately $230 million in 2022.

• Key Competitors: Magna International, ZF Friedrichshafen AG, and Bosch.
• Strategic Partnerships: Collaborations with tech companies for advanced automotive solutions.
• Innovation Focus: Emphasis on sustainable products and advanced technologies.

Outlook

Looking ahead, Tenneco is positioned to capitalize on trends in electrification and sustainability. The company anticipates increased demand for clean air technologies and advanced ride performance systems, planning for a revenue growth of approximately 5% annually through 2025.