Tenneco Shares Drop 21% Friday After a Business Update
Shares of Tenneco (NYSE: TEN), a leading designer and manufacturer of automotive products and solutions, were down 21% on Friday after the company provided investors with a business update regarding the COVID-19 outbreak.
Management provided an update on multiple aspects of its business and started off by withdrawing its first-quarter and full-year guidance due to high levels of uncertainty surrounding COVID-19. Tenneco also temporarily suspended or reduced operations across the Americas; Europe, the Middle East, and Africa; and the Asia-Pacific regions.
Management believes the impact to its business will peak during the second quarter, and the company will take steps to partly offset the damage: Overall salary costs will be reduced at least 25% through furloughs and pay cuts, while executives will reduce their salaries by 50%, and the CEO will not draw a salary. Capital expenditures in 2020 will be reduced to less than $400 million, compared with previous guidance between $610 million and $650 million.
Source Fool.com
