EX-99.1 3 c81055exv99w1.txt PRESS RELEASE, DATED 11/13/03 NEWS RELEASE (TENNECO AUTOMOTIVE LOGO) For Immediate Release Contacts: Jane Ostrander Media Relations 847 482-5607 jane.ostrander@tenneco-automotive.com Leslie Hunziker Investor Relations 847 482-5042 leslie.hunziker@tenneco-automotive.com TENNECO AUTOMOTIVE ADJUSTS THIRD QUARTER 2003 FINANCIAL RESULTS Lake Forest, Illinois, November 13, 2003 - Tenneco Automotive (NYSE: TEN) announced today that the company's third quarter results, as reported on October 21, 2003, understated net income by $1 million and earnings per diluted share (EPS) by 1-cent and overstated revenue and earnings before interest and taxes (EBIT) for the quarter by $1 million. In filing its third quarter report on Form 10-Q today, the company reported third quarter 2003 net income of $4 million, an increase from $3 million as announced on October 21, 2003, and earnings per share of 10-cents, an increase from previously reported 9-cents. The company reported third quarter revenue of $914 million versus $915 million as previously reported, and the company's EBIT in the quarter was $38 million, down from $39 million as originally reported. These changes were made as a result of two adjustments. The first adjustment was identified in Germany during a routine monthly review of vehicle platform and customer financial performance. The revenue generated from one particular platform was not recorded properly during a period in the quarter when the company was transitioning its -More- -2- supply of product from one facility to a newly opened manufacturing facility. With the adjustment, European revenue for third quarter 2003 was $344 million versus the previously reported $345 million, and European EBIT was a loss of $3 million instead of a loss of $2 million. The second adjustment related to the write-off of debt issuance costs by the company in connection with the refinancing of some of its debt earlier this year. The company reported lower interest expense of $2 million following re-examination of the calculation of the write-off. Third quarter 2003 financial statements and reconciliations of GAAP to non-GAAP results reflecting the adjusted results are attached. Tenneco Automotive is a $3.5 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 19,600 employees worldwide. Tenneco Automotive is one of the world's largest producers and marketers of ride control and exhaust systems and products, which are sold under the Monroe(R) and Walker(R) global brand names. Among its products are Sensa-Trac(R) and Monroe Reflex(R) shocks and struts, Rancho(R) shock absorbers, Walker(R) Quiet-Flow(R) mufflers and DynoMax(R) performance exhaust products, and Monroe(R) Clevite(R) vibration control components. ### ATTACHMENT 1 TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES STATEMENTS OF INCOME (LOSS) Unaudited NINE MONTHS ENDED SEPTEMBER 30, (Millions except share and per share amounts)
2003 2002 ---------- ---------- Net sales and operating revenues: $ 2,833 $ 2,613 ========== ========== Costs and Expenses Cost of Sales (exclusive of depreciation shown below) 2,249 (a) 2,058 (d) Engineering, Research and Development 50 49 Selling, General and Administrative 276 271 (e) Depreciation and Amortization of Other Intangibles 120 104 ---------- ---------- Total Costs and Expenses 2,695 2,482 ========== ========== Gain on sale of assets -- 11 (f) Loss on sale of receivables (1) (2) Other Income (Loss) (1) (2) ---------- ---------- Total Other Income (Loss) (2) 7 ---------- ---------- Income before Interest Expense, Income Taxes, and Minority Interest North America 109 (a) 108 (d) (e) Europe 7 (a) 15 (d) (e) (f) Other 20 15 ---------- ---------- 136 138 Less: Interest expense (net of interest capitalized) 103 (b) 108 Income tax expense (benefit) (1)(c) 6 (g) Minority interest 5 2 ---------- ---------- Income before Cumulative Effect of Change in Accounting Principle 29 22 ---------- ---------- Cumulative Effect of Change in Accounting Principle, net of income tax -- (218) ---------- ---------- Net income (loss) $ 29 $ (196) ========== ========== Average common shares outstanding: Basic 40.3 39.8 ========== ========== Diluted 41.5 41.7 ========== ========== Earnings (loss) per share of common stock: Basic- Before Cumulative Effect of Change in Accounting Principle $ 0.72 $ 0.56 Cumulative Effect of Change in Accounting Principle -- (5.48) ---------- ---------- $ 0.72 $ (4.92) ========== ========== Diluted- Before Cumulative Effect of Change in Accounting Principle $ 0.70 $ 0.53 Cumulative Effect of Change in Accounting Principle -- (5.48) ---------- ---------- $ 0.70 $ (4.95) ========== ==========
(a) Includes restructuring and restructuring related charges of $7 million pre-tax, $4 million after-tax or $0.11 per share. The entire charge is recorded in cost of sales. Geographically, $3 million is recorded in North America and $4 million in Europe. (b) Includes a pre-tax expense of $3 million, $2 million after-tax or $.05 per share related to debt issuance costs that were deferred on the senior debt we paid down with the proceeds of the $350 million bond offering. (c) Includes a $14 million or $.36 per share tax benefit related to the resolution of several tax issues. (d) Includes restructuring and restructuring related charges of $6 million pre-tax, $3 million after-tax or $0.08 per share. The entire charge is recorded in cost of sales. Geographically, $3 million is recorded in both North America and Europe. (e) Includes costs associated with the amendment of the senior debt agreement of $2 million pre-tax, $1 million after-tax or $0.03 per share. The entire charge is recorded in SG&A. Geographically, $1 million is recorded in both North America and Europe. (f) Includes a gain on the sale of a UK facility of $11 million pre-tax, $5 million after-tax or $0.13 per share. Geographically, all of the gain is recorded in Europe. (g) Includes a $6 million or $.17 per share tax benefit related to the resolution of several tax issues. ATTACHMENT 1 TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES STATEMENTS OF INCOME (LOSS) Unaudited THREE MONTHS ENDED SEPTEMBER 30, (Millions except share and per share amounts)
2003 2002 ---------- ---------- Net sales and operating revenues: $ 914 $ 856 ========== ========== Costs and Expenses Cost of Sales (exclusive of depreciation shown below) 727 (a) 675 (d) Engineering, Research and Development 18 18 Selling, General and Administrative 91 85 Depreciation and Amortization of Other Intangibles 40 35 ---------- ---------- Total Costs and Expenses 876 813 ========== ---------- Loss on sale of receivables -- (1) Other Income (Loss) -- (2) ---------- ---------- Total Other Income (Loss) -- (3) ---------- ---------- Income (Loss) before Interest Expense, Income Taxes, and Minority Interest North America 32 36 (d) Europe (3)(a) (1)(d) Other 9 5 ---------- ---------- 38 40 Less: Interest expense (net of interest capitalized) 34 (b) 36 Income tax expense (benefit) (2)(c) (2)(e) Minority interest 2 1 ---------- ---------- Net income $ 4 $ 5 ========== ========== Average common shares outstanding: Basic 40.6 39.8 ========== ========== Diluted 42.2 42.0 ========== ========== Earnings (loss) per share of common stock: Basic- $ 0.11 $ 0.13 ========== ========== Diluted- $ 0.10 $ 0.13 ========== ==========
(a) Includes restructuring related charges of $1 million pre-tax, $1 million after-tax or $0.02 per share. The entire charge is recorded in cost of sales. Geographically all of the charge is recorded in Europe. (b) Includes a pre-tax reduction of $2 million, $1 million after-tax or $.02 per share related to debt issuance costs that were deferred on the senior debt we paid down with the proceeds of the $350 million bond offering. (c) Includes a $3 million or $.09 per share tax benefit related to the resolution of outstanding tax issues. (d) Includes restructuring and other charges of $3 million pre-tax, $2 million after-tax or $0.04 per share. The entire charge is recorded in cost of sales. Geographically, $1 million is recorded in North America and $2 million in Europe. (e) Includes a $2 million or $.06 per share tax benefit related to a change in the estimated effective tax rate. ATTACHMENT 1 TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES BALANCE SHEET (Unaudited) (Millions)
September 30, 2003 December 31, 2002 -------------------- -------------------- Assets Cash and Temporary Cash Investments $ 63 $ 54 Receivables, Net 483 409 Inventories 338 352 Other Current Assets 160 151 Investments and Other Assets 538 512 Plant, Property, and Equipment, Net 1,067 1,026 -------------------- -------------------- Total Assets $ 2,649 $ 2,504 ==================== ==================== Liabilities and Shareowners' Equity Short-Term Debt $ 18 $ 228 Accounts Payable 569 505 Accrued Taxes 42 40 Accrued Interest 41 23 Other Current Liabilities 216 220 Long-Term Debt 1,386 1,217 Deferred Income Taxes 71 103 Deferred Credits and Other Liabilities 268 243 Minority Interest 21 19 Total Shareholders' Equity 17 (94) -------------------- -------------------- Total Liabilities and Shareholders' Equity $ 2,649 $ 2,504 ==================== ====================
ATTACHMENT 1 TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES Statement of Cash Flows (Unaudited) (Millions)
NINE MONTHS ENDED SEPTEMBER 30, -------------------------- 2003 2002 ---------- ---------- Operating activities: Net income (loss) before cumulative effect of change in accounting principle, net of tax $ 29 $ 22 Adjustments to reconcile income (loss) to net cash provided (used) by operating activities - Depreciation and amortization 120 104 Deferred income taxes (17) (17) (Gain)/loss on sale of businesses and assets, net 1 (9) Changes in components of working capital - (Inc.)/dec. in receivables (46) (25) (Inc.)/dec. in inventories 43 11 (Inc.)/dec. in prepayments and other current assets 3 (20) Inc./(dec.) in payables 31 76 Inc./(dec.) in taxes accrued (25) 3 Inc./(dec.) in interest accrued 19 14 Inc./(dec.) in other current liabilities (15) 10 Other 19 (1) ---------- ---------- Net cash provided (used) by operating activities 162 168 Investing activities: Net proceeds from sale of assets 4 20 Expenditures for plant, property & equipment (83) (86) Investments and other (5) 10 ---------- ---------- Net cash provided (used) by investing activities (84) (56) ---------- ---------- Net Cash provided (used) before financing activities 78 112 Financing activities: Proceeds from capital contributions 1 -- Issuance of long-term debt 350 1 Debt issuance costs on long-term debt (13) -- Retirement of long-term debt (277) (89) Net inc./(dec.) in short-term debt excluding current maturities on long-term debt (119) (22) Other (1) -- ---------- ---------- Net cash provided (used) by financing activities (59) (110) ---------- ---------- Effect of foreign exchange rate changes on cash and temporary cash investments (10) (9) ---------- ---------- Inc./(dec.) in cash and temporary cash investments 9 (7) Cash and temporary cash investments, January 1 54 53 ---------- ---------- Cash and temporary cash investments, September 30 $ 63 $ 46 ========== ========== Cash paid during the period for interest $ 79 $ 94 Cash paid during the period for income taxes $ 41 $ 22
ATTACHMENT 2 TENNECO AUTOMOTIVE RECONCILIATION OF GAAP(1) RESULTS TO NON-GAAP RESULTS Unaudited
Q3 2003 Q3 2002 -------------------------- ------------------------- Amount Per Share Amount Per Share ---------- ---------- ---------- ---------- Net Income (GAAP measure) $ 4 $ 0.10 $ 5 $ 0.13 After tax adjustments (reflects non-GAAP measures): Restructuring and restructuring related expenses 1 0.02 2 0.04 Tax return to accrual adjustment (3) (0.09) -- -- Debt issuance cost write off adjustment (1) (0.02) -- -- Effective tax rate change -- -- (2) (0.06) ---------- ---------- ---------- ---------- Non-GAAP earnings measure(2) $ 1 $ 0.01 $ 5 $ 0.11 ========== ========== ========== ==========
Q3 2003 --------------------------------------------------------- North Rest of America Europe World Total ---------- ---------- ---------- ---------- Net income (loss) $ 4 Minority interest 2 Income tax expense (benefit) (2) Interest expense (net of interest capitalized) 34 ---------- Income(loss) before interest expense, income taxes and minority interest (GAAP measure) $ 32 $ (3) $ 9 38 Depreciation and amortization of other intangibles 22 15 3 40 ---------- ---------- ---------- ---------- Total EBITDA(3) $ 54 $ 12 $ 12 $ 78 ========== ========== ========== ==========
Q3 2002 --------------------------------------------------------- North Rest of America Europe World Total ---------- ---------- ---------- ---------- Net income (loss) $ 5 Minority interest 1 Income tax expense (benefit) (2) Interest expense (net of interest capitalized) 36 ---------- Income(loss) before interest expense, income taxes and minority interest (GAAP measure) $ 36 $ (1) $ 5 40 Depreciation and amortization 22 10 3 35 ---------- ---------- ---------- ---------- Total EBITDA(3) $ 58 $ 9 $ 8 $ 75 ========== ========== ========== ==========
(1) Generally Accepted Accounting Principles (2) Tenneco Automotive presents the above reconciliation of GAAP to non-GAAP results in order to reflect the results for the third quarters of 2003 and 2002 in a manner that allows a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of the company. Adjustments similar to the ones reflected above have been recorded in earlier periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measure to analyze earnings would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the company's financial results in any particular period. (3)EBITDA represents net income before interest expense, income taxes, minority interest and depreciation and amortization. EBITDA is not a calculation based upon generally accepted accounting principles. The amounts included in the EBITDA calculation, however, are derived from amounts included in the historical statements of income data. In addition, EBITDA should not be considered as an alternative alternative to net income or operating income as an indicator of the company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. Tenneco Automotive has presented EBITDA because it regularly reviews EBITDA as a measure of the company's ability to incur and service debt. In addition, Tenneco Automotive believes its debt holders utilize and analyze our EBITDA for similar purposes. Tenneco Automotive also believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors. However, the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. ATTACHMENT 2 TENNECO AUTOMOTIVE RECONCILIATION OF GAAP(1) RESULTS TO NON-GAAP RESULTS Unaudited
YTD 2003 YTD 2002 -------------------------- ------------------------- Amount Per Share Amount Per Share ---------- ---------- ---------- ---------- Net Income before Cumulative Effect of Change in Accounting Principle (GAAP measure) $ 29 $ 0.70 $ 22 $ 0.53 After tax adjustments (reflects non-GAAP measures): Restructuring and restructuring related expenses 4 0.11 3 0.08 Tax adjustments (14) (0.36) (6) (0.17) Debt issuance cost write off 2 0.05 -- -- Gain on sale of York facility -- -- (5) (0.13) Amendment fee -- -- 1 0.03 ---------- ---------- ---------- ---------- Non-GAAP earnings measure(2) $ 21 $ 0.50 $ 15 $ 0.34 ========== ========== ========== ==========
YTD 2003 -------------------------------------------------------- North Rest of America Europe World Total ---------- ---------- ---------- ---------- Net income (loss) $ 29 Minority interest 5 Income tax expense (benefit) (1) Interest expense (net of interest capitalized) 103 ---------- Income(loss) before interest expense, income taxes and minority interest (GAAP measure) $ 109 $ 7 $ 20 136 Depreciation and amortization of other intangibles 68 43 9 120 ---------- ---------- ---------- ---------- Total EBITDA(3) $ 177 $ 50 $ 29 $ 256 ========== ========== ========== ==========
YTD 2002 -------------------------------------------------------- North Rest of America Europe World Total ---------- ---------- ---------- ---------- Net income (loss) $ (196) Cumulative effect of change in accounting principle, net of income tax 218 Minority interest 2 Income tax expense (benefit) 6 Interest expense (net of interest capitalized) 108 ---------- Income(loss) before interest expense, income taxes and minority interest (GAAP measure) $ 108 $ 15 $ 15 138 Depreciation and amortization 65 30 9 104 ---------- ---------- ---------- ---------- Total EBITDA(3) $ 173 $ 45 $ 24 $ 242 ========== ========== ========== ==========
(1) Generally Accepted Accounting Principles (2) Tenneco Automotive presents the above reconciliation of GAAP to non-GAAP results in order to reflect the results for the first nine months of 2003 and 2002 in a manner that allows a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of the company. Adjustments similar to the ones reflected above have been recorded in earlier periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measure to analyze earnings would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the company's financial results in any particular period. (3)EBITDA represents net income before cumulative effect of change in accounting principle, interest expense, income taxes, minority interest and depreciation and amortization. EBITDA is not a calculation based upon generally accepted accounting principles. The amounts included in the EBITDA calculation, however, are derived from amounts included in the historical statements of income data. In addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of the company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. Tenneco Automotive has presented EBITDA because it regularly reviews EBITDA as a measure of the company's ability to incur and service debt. In addition, Tenneco Automotive believes its debt holders utilize and analyze our EBITDA for similar purposes. Tenneco Automotive also believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors. However, the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. ATTACHMENT 2 TENNECO AUTOMOTIVE RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS Unaudited
Q3 2003 -------------------------------------------------------------------------------- Pass-through Revenues Sales Excluding Revenues Excluding Currency Currency Excluding Currency and Pass-through Revenues Impact Currency Impact Sales ------------ ------------ ------------ ------------ ---------------- North America Aftermarket Ride Control $ 78 $ -- $ 78 $ -- $ 78 Exhaust 45 -- 45 -- 45 ------------ ------------ ------------ ------------ ------------ Total North America Aftermarket 123 -- 123 -- 123 North America Original Equipment Ride Control 102 -- 102 -- 102 Exhaust 227 5 222 67 155 ------------ ------------ ------------ ------------ ------------ Total North America Original Equipment 329 5 324 67 257 Total North America 452 5 447 67 380 Europe Aftermarket Ride Control 45 7 38 -- 38 Exhaust 47 7 40 -- 40 ------------ ------------ ------------ ------------ ------------ Total Europe Aftermarket 92 14 78 -- 78 Europe Original Equipment Ride Control 65 8 57 -- 57 Exhaust 187 26 161 52 109 ------------ ------------ ------------ ------------ ------------ Total Europe Original Equipment 252 34 218 52 166 Total Europe 344 48 296 52 244 Asia 42 -- 42 15 27 South America 31 2 29 4 25 Australia 45 9 36 4 32 ------------ ------------ ------------ ------------ ------------ Total Rest of World 118 11 107 23 84 Total Tenneco Automotive $ 914 $ 64 $ 850 $ 142 $ 708 ============ ============ ============ ============ ============
Q3 2002 -------------------------------------------------------------------------------- Pass-through Revenues Sales Excluding Revenues Excluding Currency Currency Excluding Currency and Pass-through Revenues Impact Currency Impact Sales ------------ ------------ ------------ ------------ ---------------- North America Aftermarket Ride Control $ 80 $ -- $ 80 $ -- $ 80 Exhaust 49 -- 49 -- 49 ------------ ------------ ------------ ------------ ------------ Total North America Aftermarket 129 -- 129 -- 129 North America Original Equipment Ride Control 101 -- 101 -- 101 Exhaust 236 -- 236 74 162 ------------ ------------ ------------ ------------ ------------ Total North America Original Equipment 337 -- 337 74 263 Total North America 466 -- 466 74 392 Europe Aftermarket Ride Control 39 -- 39 -- 39 Exhaust 47 -- 47 -- 47 ------------ ------------ ------------ ------------ ------------ Total Europe Aftermarket 86 -- 86 -- 86 Europe Original Equipment Ride Control 46 -- 46 -- 46 Exhaust 173 -- 173 56 117 ------------ ------------ ------------ ------------ ------------ Total Europe Original Equipment 219 -- 219 56 163 Total Europe 305 -- 305 56 249 Asia 30 -- 30 9 21 South America 24 -- 24 2 22 Australia 31 -- 31 2 29 ------------ ------------ ------------ ------------ ------------ Total Rest of World 85 -- 85 13 72 Total Tenneco Automotive $ 856 $ -- $ 856 $ 143 $ 713 ============ ============ ============ ============ ============
Tenneco Automotive presents the above reconciliation of revenues in order to reflect the trend in the company's sales, in various product lines and geographical regions, separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, pass-through catalytic converter sales include precious metals pricing, which may be volatile. While Tenneco Automotive's original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding pass-through catalytic converter sales removes this impact. Tenneco Automotive uses this information to analyze the trend in revenues before these factors. Tenneco Automotive believes investors find this information useful in understanding period to period comparisons in the company's revenues. ATTACHMENT 2 TENNECO AUTOMOTIVE RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS Unaudited
Nine Months Ended September 30, 2003 ---------------------------------------------------------------------------------- Pass-through Revenues Sales Excluding Revenues Excluding Currency Currency Excluding Currency and Pass-through Revenues Impact Currency Impact Sales -------------- -------------- -------------- -------------- ---------------- North America Aftermarket Ride Control $ 240 $ -- $ 240 $ -- $ 240 Exhaust 127 -- 127 -- 127 -------------- -------------- -------------- -------------- -------------- Total North America Aftermarket 367 -- 367 -- 367 North America Original Equipment Ride Control 336 -- 336 -- 336 Exhaust 731 10 721 229 492 -------------- -------------- -------------- -------------- -------------- Total North America Original Equipment 1,067 10 1,057 229 828 Total North America 1,434 10 1,424 229 1,195 Europe Aftermarket Ride Control 133 23 110 -- 110 Exhaust 137 23 114 -- 114 -------------- -------------- -------------- -------------- -------------- Total Europe Aftermarket 270 46 224 -- 224 Europe Original Equipment Ride Control 186 28 158 -- 158 Exhaust 621 97 524 166 358 -------------- -------------- -------------- -------------- -------------- Total Europe Original Equipment 807 125 682 166 516 Total Europe 1,077 171 906 166 740 Asia 118 -- 118 42 76 South America 86 (7) 93 9 84 Australia 118 20 98 11 87 -------------- -------------- -------------- -------------- -------------- Total Rest of World 322 13 309 62 247 Total Tenneco Automotive $ 2,833 $ 194 $ 2,639 $ 457 $ 2,182 ============== ============== ============== ============== ==============
Nine Months Ended September 30, 2002 ---------------------------------------------------------------------------------- Pass-through Revenues Sales Excluding Revenues Excluding Currency Currency Excluding Currency and Pass-through Revenues Impact Currency Impact Sales -------------- -------------- -------------- -------------- ---------------- North America Aftermarket Ride Control $ 256 $ -- $ 256 $ -- $ 256 Exhaust 147 -- 147 -- 147 -------------- -------------- -------------- -------------- -------------- Total North America Aftermarket 403 -- 403 -- 403 North America Original Equipment Ride Control 315 -- 315 -- 315 Exhaust 754 -- 754 249 505 -------------- -------------- -------------- -------------- -------------- Total North America Original Equipment 1,069 -- 1,069 249 820 Total North America 1,472 -- 1,472 249 1,223 Europe Aftermarket Ride Control 111 -- 111 -- 111 Exhaust 130 -- 130 -- 130 -------------- -------------- -------------- -------------- -------------- Total Europe Aftermarket 241 -- 241 -- 241 Europe Original Equipment Ride Control 136 -- 136 -- 136 Exhaust 521 -- 521 160 361 -------------- -------------- -------------- -------------- -------------- Total Europe Original Equipment 657 -- 657 160 497 Total Europe 898 -- 898 160 738 Asia 77 -- 77 26 51 South America 78 -- 78 7 71 Australia 88 -- 88 4 84 -------------- -------------- -------------- -------------- -------------- Total Rest of World 243 -- 243 37 206 Total Tenneco Automotive $ 2,613 $ -- $ 2,613 $ 446 $ 2,167 ============== ============== ============== ============== ==============
Tenneco Automotive presents the above reconciliation of revenues in order to reflect the trend in the company's sales, in various product lines and geographical regions, separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, pass-through catalytic converter sales include precious metals pricing, which may be volatile. While Tenneco Automotive's original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding pass-through catalytic converter sales removes this impact. Tenneco Automotive uses this information to analyze the trend in revenues before these factors. Tenneco Automotive believes investors find this information useful in understanding period to period comparisons in the company's revenues.