Feb. 5--Auto-components maker Tenneco Inc., badly hurt by what it characterized as the "severe and unprecedented" global falloff in automobile production, reported a hefty operating loss Thursday, and an accounting charge served to deepen the deficit.

As a supplier to car makers around the world, the Lake Forest manufacturer's fortunes are tied to those of the auto industry. And Tenneco's latest results underscore the extent to which the troubles plaguing U.S. auto makers have now gone global.

The fourth quarter saw further weakening in consumer demand and production in North America, "compounded by the dramatic fall-off in Europe and rest of the the world due to the global economic crisis and ongoing credit freeze, which has driven every major economy into recession," said Chairman and Chief Executive Officer Gregg Sherrill.

In the latest quarter, Tenneco had a net loss of $298 million, or $6.40 a diluted share, compared with a year-ago quarterly loss of $72 million, or $1.57 a share.

The latest quarter was blighted by a large but not meaningful noncash charges of $114 million to write down the carrying value of the intangible known as goodwill, and of $144 million related to deferred taxes. In addition, Tenneco recorded a $24 million pretax charge to cover costs of a restructuring, by which the company is seeking efficiencies in response to weakening industry conditions.

Excluding special items in both quarters, Tenneco said, the company had a loss in the latest quarter of $24 million, or 51 cents a share, down from adjusted net earnings of $17 million, or 34 cents a share in the year-ago quarter.

Revenues, pressured by particularly unfavorable currency-translation rates on overseas sales as well as eroding sales to auto makers, slumped to $1.21 billion from $1.57 billion. The downturn, Tenneco said, "was driven by falling production volumes, particularly in the North America and Europe emission control businesses and in China."

Tenneco, which recently won clearance from creditors on a relaxed measure of how much debt it can carry, reiterated Wednesday that it is seeking clearance fon a longer-term amendment to its senior secured credit facility, "in anticipation of continued difficult economic and industry conditions globally." The company said it expects to complete the amendment by the end of February.

jpmiller@tribune.com

-----

To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicagotribune.com.

Copyright (c) 2009, Chicago Tribune

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:TEN,

A service of YellowBrix, Inc.