Tenneco (TEN) Announces 2018 Revenue Growth Outlook

Tenneco Inc. (NYSE: TEN) announced today that in 2018 the company expects to outpace light vehicle industry production* by 3 percentage points, in line with last year’s estimate for 2018 revenue growth. In total, the company expects 2018 revenue growth of 5 percent, driven by increases in both the Ride Performance and Clean Air product lines. This growth assumes current industry production forecasts and is at 2017 constant currency.

In 2018, the company expects 5% organic growth driven by:

• Content growth on light and commercial vehicle platforms;
• The continued industry recovery in regulated off-highway regions.

Assumptions for the 2018 revenue outlook include:

• Global industry light vehicle production +2%*
• Global commercial truck production about flat**
• Off-highway engine production in regulated regions up by low double-digits***
• Organic growth is net of OE price downs
• Substrates estimated at 24% - 25% of total revenue

Tenneco also announced its revenue guidance for 2019 and 2020. In those years, the company expects to outperform industry production by:

• 4% to 6% in 2019
• 3% to 5% in 2020

Tenneco will report its fourth quarter and full-year 2017 financial results on February 9, 2018.

*IHS Automotive December 2017 global light vehicle production and Tenneco estimates.**Power Systems Research (PSR) January 2018 global commercial truck and bus production and Tenneco estimates.***Customer schedules and Tenneco estimates for off-highway engine production in North America and Europe.

Tenneco is an $8.6 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 31,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive and commercial vehicle original equipment markets and the aftermarket. Tenneco’s principal brand names are Monroe®, Walker®, XNOx™ and Clevite®Elastomers.

Revenue estimates in this release are based on OE manufacturers' programs that have been formally awarded to the company; programs where Tenneco is highly confident that it will be awarded business based on informal customer indications consistent with past practices; and Tenneco's status as supplier for the existing program and its relationship with the customer. These revenue estimates are also based on anticipated vehicle production levels and pricing, including precious metals pricing and the impact of material cost changes. Unless otherwise indicated, our revenue estimate methodology does not attempt to forecast currency fluctuations, and accordingly, reflects constant currency. For certain additional assumptions upon which these estimates are based, see the slides accompanying the January 17, 2018 webcast, which will be available on the financial section of the Tenneco website at www.tenneco.com.

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