ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 13, 2009, Tenneco (NYSE:TEN) announced it is postponing its plans to
close an original equipment (OE) ride control plant in the United States as part
of the company's current global restructuring program.
The company now expects to generate $58 million in annualized costs savings once
the revised restructuring program is fully implemented by the end of 2009 and
record approximately $31 million in restructuring and restructuring related
charges, approximately $25 million in cash. The company will record $23 million
of these charges in the fourth quarter of 2008 and the remainder through 2009.
Under the original global restructuring plan, which the company announced on
October 29, 2008, Tenneco expected to generate $64 million in annualized savings
and record up to $60 million in charges, approximately $44 million in cash.
The company plans to accelerate efforts to maximize efficiency and flex
operations at its Cozad, Nebraska and Hartwell, Georgia OE ride control plants
in lieu of closing one of these two facilities at this time. All other actions
announced in the October 29 restructuring program remain on track.
Previously, Tenneco identified two of the North America manufacturing plants
slated for closure as part of its global restructuring plan, the company's
Milan, Ohio elastomer facility and its Evansville, Indiana OE emission control
just-in-time facility. The company has now announced its Emigsville,
Pennsylvania OE emission control just-in-time facility as the third North
American plant to be closed.
A copy of the company's press release announcing this information and certain
other information is attached hereto as Exhibit 99.1 and is incorporated herein
by reference.
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