Tenneco Automotive Q2 2009 Earnings Transcript

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2009-07-30 18:54:18.0

Tags: Revenue, Europe, North America, Operational Accounting, Sales Strategy, Finance, Sales, Seeking Alpha, Tenneco Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And our first question comes from David Leiker with Robert W. Baird. You may ask your question.

David Leiker - Robert W. Baird

Good morning, Gregg and Ken.

Gregg Sherrill

Good morning, David.

David Leiker - Robert W. Baird

Three quick questions here, on the after market business, U.S and Europe, are you still seeing obviously, on that side of it if you can push things out and ride control you can push things out. Are you still seeing consumers defer retail replacements of those components?

Gregg Sherrill

I think we're still certainly seeing some of that. I mean there is -- right now, if you look at North America, the aftermarket -- I call it essentially flat. I think the total revenues within $5 million of last years, so.

David Leiker - Robert W. Baird

Great.

Gregg Sherrill

So, that's to be honest with you sitting here, anything is flat right now, looks pretty good. And so, we still view North America is being relatively strong, Europe on the other hand is a little bit of a mix bag. Western Europe aftermarket sales are hanging in there. They've done fairly well but Eastern Europe in particular has been down and I think there we know that there are certainly a lot of discretionary spending, cutbacks that have certainly hurt aftermarket sales in that particular region.

David Leiker - Robert W. Baird

Is destocking still an issue?

Gregg Sherrill

I don't see that as much of an issue right now.

David Leiker - Robert W. Baird

Okay. And then in North America and Europe, you did a great job in the revenue line, revenues didn't fall as much of the end market. There are a couple of key things that you can highlight for us there?

Gregg Sherrill

We really are -- all we had relatively favorable platform mix, David. And so as we sort of look at just the overall mix of platforms continue to be on the ones that have that continue to do well. There is not a particular platform that attains out. So it's really just a mix.

David Leiker - Robert W. Baird

And then the last thing that I just trickling into the -- there to as volumes have picked up in North America. There seems to be some kicks in the supply chain where people are having difficult getting raw materials or components or things like that. Are you seeing any of that or are you realizing that? I mean have you heard that from other folks?

 

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