2001 Annual Report - Tenneco Inc.

People Driving Progress 

2001 Annual Report

Tenneco Automotive at a Glance 

Leading Brands. 

Corporate Profile. Tenneco 

Automotive is one of the world’s 

largest designers, manufacturers 

and marketers of emission 

control and ride control products 

and systems for the automotive 

original equipment market and 

aftermarket. The company 

became an independent corporation 

in 1999, allowing singular 

focus on strategies to maximize 

global results. 

Tenneco Automotive markets 

its products principally under the 

Monroe®, Walker®, Gillet and 

Clevite brand names. Leading 

manufacturers worldwide use 

our products in their vehicles, 

attracted principally by our groundbreaking 

advanced technologies. 

We are one of the top suppliers 

to the automotive aftermarket, 

offering exceptionally strong brand 

recognition among consumers 

and trade personnel. 

Tenneco Automotive employs 

21,600 people worldwide. 

Strategic Balance. 

The company is well 

balanced in its business, 

product and 

geographical mix. 

’01 OE/AM 

Revenue Balance 

(in percent) 

Original Equipment 

Market 72% 

Automotive 

Aftermarket 28% 

Our Mission. Tenneco Automotive’s 

mission is to delight our customers 

as the number-one technologydriven, 

global manufacturer and 

marketer of value-differentiated 

ride control, emission control and 

elastomer products and systems. 

We will strengthen our leading 

position through a shared-value 

culture of employee involvement, 

where an intense focus on continued 

improvement delivers 

shareholder value in everything 

we do. 

’01 Product 

Balance 

(in percent) 

Emission 

Control 65% 

Ride Control 35% 

Our Vision: 

’01 Geographic 

Revenue Balance 

(in percent) 

North America 53% 

Europe 38% 

International 

(South America 

and Asia) 6% 

Australia 3% 

Pioneering global 

ideas for cleaner, 

quieter and safer 

transportation.

Financial Highlights 

(dollars in millions except per share amounts) 2001 2000 1999 

Sales 1 $3,364 $3,528 $3,260 

Earnings before interest, taxes, 

depreciation and amortization 1 $÷«300 $÷«336 $÷«374 

Earnings before interest and taxes 1 $÷«147 $÷«185 $÷«230 

Income from continuing operations 1 $÷««(18) $÷«÷÷4 $÷«÷24 

Earnings per share, diluted $«(0.48) $÷««.10 $÷««.74 

Capital expenditures $÷«127 $÷«146 $÷«154 

Depreciation and amortization $÷«153 $÷«151 $÷«144 

Average diluted shares outstanding 38,001,248 34,906,825 33,656,063 

Total debt $1,515 $1,527 $1,634 

Cash Flow 2 

(dollars in millions) 

124 

’98 

169 

281 

209 

’99 ’00 ’01 

SGA&E Expense 3 

(percentage of sales) 

14.2 

’98 

14.5 

’99 ’00 ’01 

1 Revenues for 2000 and 1999 have been reduced by $21 million and $19 million, respectively, to reflect the reclassification of certain sales incentives that 

were previously shown in selling, general and administrative expense. The information presented for 2001 is before restructuring and other charges, an environmental 

charge, costs associated with the amendment of certain terms of our senior credit facility and a tax charge, which combined reduced EBIT by $55 million, 

net income by $112 million and earnings per share by $2.95. The information presented for 2000 is before restructuring and other charges, a stock option 

buyback and a reversal of a reserve, which combined reduced EBIT by $65 million, net income by $45 million and earnings per share by $1.28. The information 

presented for 1999 is before a charge for restructuring and transaction and other expenses and also includes pro forma adjustments to recognize incremental 

stand-alone expenses equal to those incurred in 2000 and to adjust the 1999 capital structure to be consistent with 2000. Combined, these items reduced 

1999 EBIT by $82 million, net income by $87 million and earnings per share by $2.61. Additional information about these items can be found in Selected 

Financial Data and Management’s Discussion and Analysis in our Annual Report on Form 10-K for the year ended December 31, 2001. 

2 Before financing activities, interest and taxes. 

3 Before restructuring and other charges, transaction costs, stock option buy back and senior credit facility amendment costs, which increased SGA&E by $15, 

$37, $80 and $53 million in 2001, 2000, 1999 and 1998, respectively. Results for 1998 and 1999 have been adjusted to reflect stand-alone costs at the 

same level as 2000. 

4 Working capital includes accounts receivable and the balance of accounts receivable securitization, inventory, prepayments and other current assets, accounts 

payable, accrued liabilities and other current liabilities. 

13.0 

12.0 

Working Capital 4 

(percentage of sales) 

18.5 

’98 

15.8 

13.3 

9.2 

’99 ’00 ’01 

Tenneco Automotive Inc. 1

2 

To Our Shareholders 

I n just our second year as a stand-alone 

company, Tenneco Automotive made 

significant progress executing strategies 

for reducing debt and strengthening customer 

relationships. We concentrated on improving internal 

factors that we could control to help offset the challenging 

external operating environment. And, although 

our sales and earnings results were undercut by the 

weak automotive market and tough global economies 

in 2001, our strategies – driven by an outstanding 

employee effort worldwide – yielded notable results. 

We reduced our net debt (total book value of debt minus 

cash) by $30 million and gained more than 55 new 

business awards from customers around the world. 

For the year, SGA&E expenses as a percent of sales, 

before restructuring and other charges, fell 1 percentage 

point, and working capital as a percent of sales, 

before factoring, declined more than 4 percentage 

points, evidence of our cost cutting and cash management 

success. 

Specifically, year-over-year improvement in these 

key metrics resulted from better operating efficiency, 

We will continue to leverage 

our advanced technology, global 

reach and brand strength – 

competitive distinctions that 

set us apart as a leader in ride 

and emission control systems. 

Tenneco Automotive Inc. 

controlled spending, reduced inventory levels and 

lower receivables. We achieved: 

• $71 million in annualized savings from 

restructuring activities; 

• $19 million in Six Sigma cost savings, 

a quality improvement initiative; 

• $19 million reduction in capital 

expenditures; 

• $92 million reduction in receivables 

balances; and 

• $96 million reduction in inventories. 

These efforts generated financial results that enabled 

us to exceed the debt covenant requirements of our 

bank lenders. They also positioned us better than many 

of our peers on year-over-year key performance metrics. 

A major driver of this progress was employing EVA® 

(Economic Value Added) 1 techniques to generate cash 

and target the best return on capital. And, by linking 

EVA improvement to compensation, we ensured that 

employees had a stake in enhancing our business. 

People Driving Progress. Our progress last year was 

achieved through the daily effort and initiative of our 

employees around the globe. I’m proud of how we’ve 

come together as a team since we began operating as 

a stand-alone company. We are unified in our goals 

and in the direction we’re taking to meet those goals. 

Employees at Tenneco Automotive have been working 

in cross-functional, cross-divisional teams, planning 

and executing strategies to drive improved results. In 

a very competitive market during 2001, they won new 

original equipment (OE) business that is expected to 

generate $1.1 billion in revenues over the next five 

years, and new aftermarket business worth more than 

$40 million in revenues annually. At the same time, 

1 EVA®is after-tax operating profit minus the annual cost of capital. EVA®is 

a registered trademark of Stern Stewart & Co.

they found ways to save money, cut costs and improve 

product quality, while saving time and materials using 

quality improvement processes to find new, more efficient 

ways to work. In 2001, these actions generated 

a $7 million improvement in EVA over 2000. 

A Balanced Approach to Financial Improvement. 

For 2002, we’re continuing to balance cost reduction 

strategies with revenue generating initiatives. We are 

striving to maintain SGA&E at current levels, further 

decrease working capital, and achieve full-year improvement 

in gross margin performance. We also are 

working to expand our business base and capitalize 

on growth opportunities. 

Streamlining Infrastructure and Improving Business 

Processes. This year we will continue to streamline our 

manufacturing and distribution infrastructure to better 

position Tenneco Automotive for an eventual industry 

upturn. We are working to create a fundamentally new 

cost structure through an initiative we call Project 

Genesis. Genesis has a global objective of better matching 

production capacity to the market by restructuring 

our manufacturing and distribution system, as well as 

the logistics and information technology operations that 

support it. The first phase of Genesis will close eight 

facilities. In addition, we are rearranging and streamlining 

the workflow at 20 manufacturing plants this year 

to optimize the production flow from raw materials 

through finished goods to distribution. 

We expect to substantially complete these phaseone 

actions by the end of the first quarter of 2003, 

and anticipate they will generate $11 million in savings 

during 2002, and $30 million in annualized savings 

beginning in 2004. Future phases of this initiative, 

which still need to be finalized, will require approval by 

the company’s board of directors and will also likely 

require senior lender approval. 

Mark P. Frissora 

Chairman and Chief Executive Officer 

Leveraging Brand Strength, Global Reach and Innovative 

Technologies. In 2002, conditions in the North American 

medium/heavy-duty truck market and the U.S. light 

vehicle market are expected to bottom or begin to 

recover. More sophisticated technologies and heightened 

environmental regulations should stimulate OE demand 

in North America and Europe. We also see a recovering 

North American aftermarket and a more stable aftermarket 

in Europe. For our part, we will continue to 

leverage our advanced technology, global reach and 

brand strength – competitive distinctions that set us 

apart as a leader in ride and emission control systems. 

In the aftermarket, our strategies to improve profitability 

and further expand market share include winning 

new business and leveraging new product introductions 

and our premium product offering. We anticipate 

moderately increased North American demand for 

replacement parts in 2002 with a growing number 


4 

of vehicles currently on the road moving into the six- to 

10-year age range, the prime vehicle age for replacement 

parts. 

We will complete the launch of our Monroe®Reflex 

shock absorbers in the European aftermarket this year, 

following the successful North American introduction 

of Reflex in 2000. We also plan to stimulate demand 

for higher-margin ride control products through a major 

global marketing campaign, the Safety TriangleSM .Our 

Safety Triangle promotion educates consumers on the 

importance of shocks and struts for vehicle stopping, 

steering and stability, and encourages motorists to 

have ride control parts inspected and replaced more 

frequently for safer driving. 

On the OE front, we are using strong technological 

capabilities to win new business by helping customers 

meet increasingly stringent environmental requirements 

and address safety concerns. For example, we have 

developed a diesel particulate filter that virtually eliminates 

particulates from diesel emissions. Demand for 

diesel vehicles has sharply increased in Europe and 

is expected to accelerate in North America over the next 

decade. In ride control, we have developed an oil-free 

shock as well as a computerized electronic shock (CES). 

CES is a major step forward in vehicle handling and 

safety that has already been awarded business by 

one OE manufacturer with a second award pending. 

Strategic Alliances Provide Access to New Opportunities. 

We also intend to continue expanding our global business 

through strategic alliances and joint ventures. 

These structures create growth opportunities with minimal 

capital investment. During 2001, we formed a joint 

venture in Thailand with Yarnapund Co. Ltd. to supply 

OE emission control products. Last year we also 

formed an alliance with Tokico Ltd., which followed 

our partnering in 2000 with Futaba Industrial Co. These 

strategic alliances with top-tier Japanese suppliers 


have already resulted in OE awarded business that is 

expected to generate $461 million in revenues between 

2002 and 2006. 

Staying the Course in 2002. Industry experts predict 

another difficult year for automakers and suppliers 

in 2002. At Tenneco Automotive, we plan to stay the 

course. We will remain focused on our goals and 

aggressive in our actions, continuing to balance our 

short-term and long-range objectives. 

In the near term, debt reduction remains our overarching 

goal. Over the longer term, we will concentrate 

on building our business through strategic alliances, 

strengthening our brands and leveraging our advanced 

technology capabilities. 

Despite ongoing industry and economic challenges, 

our employees continue to respond magnificently, laying 

the foundation for a stronger, more efficient business. 

I applaud their accomplishments, hard work and dedicated 

efforts, and am proud to be a member of the 

Tenneco Automotive team. 


Chairman and Chief Executive Officer 

April 2002

People Driving Progress 

Our primary 2001 goal was reducing debt 

using a clear strategy, backed by world-class 

tools like Six Sigma. The following pages 

describe how we moved toward our goal while 

also working to achieve long-term, profitable 

growth through strong brands, advanced 

technology capabilities and strategic alliances. 

But the most important element for our 

success was the performance of the people of 

Tenneco Automotive – People Driving Progress. 


6 

Cutting Costs The Six Sigma program is a key initiative for eliminating waste and unnecessary 

expense at our facilities throughout the world. To date, more than 100 employees have 

completed Six Sigma Black Belt training. Their corrective actions have produced higher-quality products 

and process improvements, saving $19 million worldwide during 2001. At the Cozad, Nebraska, ride 

control plant, a Six Sigma team corrected a longstanding weld problem within the production process, 

sharply cutting scrap rates and reducing rework. Changes in parts design, adjusting quality control 

and adding worker training saved the plant some $65,000 annually. 

Six Sigma Black Belt Ryan Sperko (standing) briefs Tim Bombrys, chief engineer, ride control, and Susan Lamberts, Cozad plant manager, on the Six Sigma 

project that saved the plant $65,000 a year and earned a National Association of Manufacturers Award for Workforce Excellence. 

On-screen Design. We are making innovative 

use of computer-aided engineering (CAE) predictive 

tools to design virtual emission control 

systems. The tools simulate engine exhaust 

flows, NVH (noise, vibration, harshness) and 

durability, permitting us to optimize systems 

while eliminating the time and expense of 

building and testing prototypes. 


SGA&E* 


474 

’99 

458 

’00 

405 

’01 

Restructuring programs 

drove dramatic reductions 

in SGA&E expense. 

*See note 3, page 1 

Best Buy. Streamlined supply chain management is 

driving down costs while improving logistics. Among 

the newer techniques is the use of the Internet for 

reverse auctions, in which prequalified vendors bid 

online to supply groups of bundled components. 

In reverse auctions, competitive bidding drives prices 

down rather than up as in conventional auctions. 

Savings by Tenneco Automotive teams in North 

America and Europe have averaged 13 percent over 

conventional paper-based contract bidding on parts 

such as shock absorber sleeves and machined 

components. The technique also improves quality 

by using fewer, higher-performance suppliers.

Reducing Working Capital Inventory management was key to Tenneco 

Automotive’s impressive $162 million improvement in working capital in 2001. For example, our Axios 

elastomer plant in Brazil provides an example where Kanban techniques are used to better manage 

inventories used to mix rubber compounds. Plant employees created a Kanban system that maintains 

stocks at optimum levels, reduces inventory costs and eliminates production downtime due to raw 

material shortages. These improvements reduced Axios’ inventories by 9 percent in 2001, while 

better manufacturing efficiency raised gross margins by 10 percent. 

$19 MILLION 

Reduction in Finished 

Goods Inventory 

Axios employee Ronalva Cardoso Nascimento consults a Kanban board, one of the tools used at our facilities worldwide to reduce inventories and decrease 

working capital. During 2001, working capital improvements helped drive a $97 million increase in cash flow before accounts receivable securitization. 

Taking Stock. Since 2000, the North American 

Aftermarket unit has aggressively executed finished 

goods inventory reduction programs. By reducing 

safety stock, matching production with demand, 

centralizing distribution and using innovative solutions 

to sell slow-moving parts, a $19 million 

improvement was achieved over the last 24 months. 

Working Capital* 


516 

’99 

471 

’00 

309 

’01 

We’ve reduced working 

capital by more than 

40 percent since 1999. 

*See note 4, page 1 

Expectations Exceeded. One of our 

key objectives in driving debt reduction 

for 2001 was to reduce working capital 

by $60 million. We achieved a reduction, 

before factoring, of $162 million. Our 

strategies for overdelivering on this 

objective included: 

• Employing lean manufacturing 

techniques 

• Negotiating with customers to 

accelerate collection of receivables 

• Working with suppliers to obtain 

more favorable payment schedules 

• Sharply reducing raw material, work 

in progress and finished goods 

inventories 


8 

Improving Margins New aftermarket product launches and selective price increases are 

driving margin improvement. We are also increasing manufacturing efficiency to reduce costs and improve 

profit on the products we sell. For example, value mapping identifies each step in the manufacturing 

operation that results in waste, delays or unnecessary material handling. At our Litchfield, Michigan, 

emission control plant, we found that each forklift traveled more than 29 miles annually moving materials 

within the plant. Litchfield is one of 20 facilities worldwide where processes are being redesigned 

to create a continuous flow, improving operating efficiencies and margins. 

Value mapping is a start-to-finish process for improving material flow and work-station efficiency. Tonya Wilson works at our Litchfield, Michigan, emission control 

plant, which has undertaken value mapping to improve its profitability by some $2 million annually. 

Shock Value. Our premium Monroe® Reflex 

shock absorber was introduced in Europe in 

late 2001, following a successful 2000 launch 

in North America. Higher-margin Reflex and 

Sensa-Trac® shock brands now account for 

more than one-third of aftermarket sales in 

North America, versus one-quarter prior to 

the Reflex introduction. 


Genesis. Genesis 

is a global program 

to rationalize our 

manufacturing and 

distribution operations 

and match 

our products and 

services to market 

demand. As we implement 

the Genesis 

strategy, we expect 

to reduce existing 

overcapacity, introduce 

greater standardization 

and 

improve efficiency 

throughout our 

operations. 

Taking Hold. The key to our innovative Gripper 

stabilizer bar is a unique method of mechanically 

bonding an elastomer bushing to the metal bar. 

Gripper is quieter, more wear resistant and improves 

vehicle handling. Ford Motor Company began using 

Gripper on its 2000 Taurus and Sable models, 

making Tenneco Automotive 

a Tier I supplier of 

higher-margin 

stabilizer modules.

Strengthening Relationships During 2001, our North American Aftermarket 

business expanded its customer base and achieved a better balance between traditional installer 

outlets and major retail chains. A prime contributor to this success was the signing of a long-term 

contract with Sears, Roebuck and Co. to supply Monroe®shock absorbers and struts – including premium 

Reflex and Sensa-Trac® products – for 826 Sears Auto Centers and 225 National Tire & 

Battery stores. Additionally, our sales representatives won numerous awards from key customers 

such as NAPA, Big O Tire and Uni-Select. 

Monroe® is one of the most recognized automotive brands in the world. Monroe shocks and struts are now carried by more than 1,000 Sears Auto Centers 

and National Tire & Battery stores in the United States. 

Early Start. In 1995, we established joint-venture 

operations in China – one of the world’s fastestgrowing 

economies and a huge potential automotive 

parts market – and have expanded the scope and 

size of our activities since. In 2001, one ride control 

plant and two emission control plants generated 

revenues of more than $40 million or 10 times the 

1995 level. We primarily supply original equipment 

manufacturers, whose vehicle output is expected to 

rise from about 2 million vehicles this year to more 

than 5 million by the end of the decade. We are also 

looking to expand sales in the aftermarket as it 

matures and as China’s entry into the World Trade 

Organization eases import barriers. 

Winner is... Among 

the major awards we 

received in 2001: 

• Ford’s Gold World 

Excellence Award 

• Nissan’s Master 

of Quality 

• DaimlerChrysler’s 

Gold Pentastar 

• Toyota’s Supplier 

of the Year 

• PACCAR’s Preferred 

Supplier 

• ADI’s Vendor of 

the Year 

• Canadian Tire’s 

Vendor of the Year 

SM 

Safety Triangle. We are launching a global 

marketing campaign this year to educate consumers 

on the critical role shock absorbers 

and struts play in vehicle safety. The aftermarket 

campaign concentrates on how these products 

affect the Safety Triangle – Steering, Stopping 

and Stability – and emphasizes the need to 

replace worn shocks and struts for safer driving. 


10 

Leveraging Technology Tenneco Automotive is at the forefront of innovative ride 

control and emission control technology. The introduction of new advanced-technology products to 

help customers meet increasingly stringent environmental regulations and address safety concerns 

is a fundamental source of future growth. Our emission control products, such as the diesel particulate 

filter, enable OEMs in Europe – a leading source of global automotive platforms – to meet stricter airquality 

regulations. We are also providing the means to more quickly and completely transfer technology 

expertise among our business units worldwide. 

At our Edenkoben, Germany, engineering center, Anja Jester tests emission control products, such as diesel particulate filters. We are capitalizing on trends 

like the increase of diesel vehicles in European markets. 

Advanced Technology. The Computerized 

Electronic Shock (CES) combines the comfort 

of a luxury automobile with the handling of a 

racecar. Four wheel sensors continually feed 

data on road conditions to a central controller 

that makes instantaneous adjustments in 

shock absorber damping for optimum ride 

safety and smoothness. 


Pace Setting. In 

2001, our ASD 

(Acceleration Sensitive 

Damping) technology 

– introduced 

for the 1999 Nissan 

Altima and incorporated 

in our Reflex aftermarket shocks – 

won the prestigious 

PACE Award. The 

ground-breaking ASD 

technology takes 

shock absorbers to 

a new level in terms 

of vehicle handling, 

without compromising 

ride comfort. 

Going Green. Our technology provides a range of 

benefits. For example, our Frequency Dependent 

Damping shock absorber is dubbed the “green shock” 

because, unlike conventional shocks, it uses pressurized 

gas rather than oil as the damping medium. 

It provides improvements in both ride comfort and 

handling, as well as more consistent performance 

over a wide range of operating temperatures. It is 

also environmentally friendly – avoiding the disposal 

problems associated with used shocks containing 

oil. A new emission control product, the Tubular 

Integrated Converter, uses a new production process 

that eliminates welds and potential leakage, reduces 

weight and lowers costs.

Capitalizing on Growth Opportunities The global automotive industry 

challenges suppliers to support manufacturing sites throughout the world. We are developing and 

leveraging strategic alliances to increase our presence while avoiding large capital investments. In 

2001, we formed an alliance with Tokico Ltd. to support Japanese vehicle manufacturers’ global platforms 

with ride control products, complementing our earlier alliance and joint-venture agreement with 

Japan’s Futaba Industrial Co. for supplying emission control products. We have also formed a joint 

venture in Thailand with Yarnapund Co. Ltd. to supply emission control systems. 

Mark Lytle of Tenneco Automotive confers with Yutaka Nagasaki of Futaba Industrial Co. Ltd., at our joint-venture emission control plant at Burnley, England. 

Alliances with established suppliers, particularly in Asia, have created new opportunities for growth. 

in New Business 

$461MILLION 

Awards Through 

Alliances 

Allied Successes. Our strategic alliances with 

Tokico and Futaba have produced new OE business 

expected to generate $461 million in revenues 

through 2006. Strategic alliances have enabled us 

to support such global customers as Nissan, 

Toyota, Honda and Isuzu more effectively than we 

could as an individual supplier. 

Booking Business. 

We won significant 

new business in 2001 

including awards 

to supply systems 

for the Honda Accord, 

the Lexus RX 300, the 

BMW 1 Series, the 

new Nissan pickup 

truck/SUV and a new 

Fiat passenger vehicle. 

We also added 

new aftermarket 

accounts including 

Discount Auto Parts, 

Parts Plus, Goodyear 

and AD International. 

Specialty Markets. We continue to introduce 

high-margin products for the heavy-duty and 

other specialty markets. The Noisebraker 

Muffler for heavy-duty trucks enhances exhaust 

performance while diminishing the noise 

associated with engine braking. 


12 

Directors and Senior Management Team 

Board of Directors 

M. Kathryn Eickhoff �� 

President and 

Chief Executive Officer 

Eickhoff Economics, Inc. 


Chairman and 



Frank E. Macher � 

Chairman and 


Federal-Mogul Corporation 

Sir David Plastow � 

Retired Chairman and 


Vickers plc 

Roger B. Porter � � 

IBM Professor of 

Business and Government 

Harvard University 

David B. Price, Jr. �� 

Consultant, 

Former President 

PMD Group, Inc. 

Dennis G. Severance � 

Accenture Professor of 

Computer and Information Systems 

University of Michigan Business 

School 

Paul T. Stecko �� 

Chairman and 


Packaging Corporation of America 

� Audit Committee 

� Compensation/Nominating/ 

Governance Committee 

� Three-Year Independent 

Director Evaluation Committee 

Green symbol indicates committee chair 


Senior Managers 

Don R. Miller, Vice President and General Manager, Europe Aftermarket; Hari N. Nair, Executive Vice 

President and Managing Director, Europe; David G. Gabriel, Senior Vice President and General Manager, 

North America Aftermarket; Mark A. McCollum, Senior Vice President and Chief Financial Officer; 

Herman Weltens, Vice President, Global Engineering, Emission Control; Mark P. Frissora, Chairman 

and Chief Executive Officer; Richard P. (Mike) Schneider, Senior Vice President, Global Administration; 

Lois Boyd, Vice President, Global Program Management 

Kenneth R. Trammell, Vice President and Controller; William M. Churchill, Vice President, Global Engineering, 

Ride Control; Ronald G. Berlin, Vice President, Global Supply Chain Management; James K. Spangler, 

Vice President, Global Communications; Alex Drysdale, Vice President and Managing Director, Australia/ 

New Zealand; Timothy R. Donovan, Executive Vice President, General Counsel and Managing Director, 

International; Josep M. Fornos, Vice President and General Manager, Europe Original Equipment, Ride Control 

H. William Haser, Vice President and Chief Information Officer, Americas; Brent J. Bauer, Senior Vice 

President and General Manager, Global Emission Control; Paul D. Novas, Vice President and Treasurer; 

Theo Bonneu, Vice President and Controller, Europe; Arthur Kaun, Vice President and Chief Information 

Officer, Europe and Asia; Timothy E. Jackson, Senior Vice President, Global Technology; Neal A. Yanos, 

Vice President and General Manager, North America Original Equipment, Ride Control

Investor Information 

Corporate Headquarters 


500 North Field Drive 

Lake Forest, Illinois 60045 

847.482.5000 

Web Site 

www.tenneco-automotive.com 

Corporate Information 

Individuals interested in receiving the 

company’s latest quarterly earnings 

press release or other company literature 

should write the Investor Relations 

Department at the corporate headquarters 

address or call 847.482.5042. 

Information about Tenneco Automotive 

is also available on the company’s 

web site. 

Stock Listings 

Tenneco Automotive’s common stock is 

listed under the ticker symbol TEN. 

TEN is traded primarily on the New York 

Stock Exchange and also on the following 

exchanges: Chicago, Pacific and 

London. 

As of February 15, 2002, there were 

approximately 42,219 holders of record 

of the company’s common stock, par 

value $0.01 per share. 

Stock Price Data 

Investor Inquiries 

Securities analysts, portfolio managers 

and representatives of financial institutions 

seeking information about the 

company should contact the Investor 

Relations Department at 847.482.5042. 

Stockholder Inquiries 

For stockholder services such as 

exchange of certificates, issuance of 

certificates, lost certificates, change 

of address, change in registered ownership 

or share balance, write, call or 

e-mail the company’s transfer agent: 

First Union National Bank 

Shareholder Customer Service 

1525 West W.T. Harris Blvd., 3C3 

Charlotte, NC 28288-1153 

866.839.3259 Toll Free 

704.427.2602 

www.firstunion.com/corptrust 

Click on “FirstLink Account Access”; 

click on “Equity” 

Sale Prices 

High Low 

2001 

1st quarter $÷4.25 $2.62 

2nd quarter 4.49 2.40 

3rd quarter 5.45 1.86 

4th quarter 2.30 1.35 

2000 

1st quarter $11.50 $7.00 

2nd quarter 9.50 5.25 

3rd quarter 7.62 4.81 

4th quarter 5.31 2.50 

Dividends 

The Board of Directors of Tenneco 

Automotive eliminated its quarterly 

common stock dividend on January 9, 

2001. Prior to that, the company had 

paid a $0.05 per share of common 

stock dividend in each of the four quarters 

of 2000. The company expects 

that for the foreseeable future it will 

follow a policy of retaining earnings in 

order to finance the continued development 

of its business. Additional information 

on the company’s dividend 

policy and restrictions on the payment 

of dividends can be found in 

Management’s Discussion and Analysis 

in the Annual Report on Form 10-K for 

the year ended December 31, 2001. 

Annual Meeting 

The Annual Meeting of Stockholders 

will be held at 10:00 a.m. Central Time 

on May 14, 2002, at The Peabody 

Hotel, 149 Union Avenue, Memphis, 

Tennessee. 


500 North Field Drive 

Lake Forest, Illinois 60045 

847.482.5000 

www.tenneco-automotive.com 

NYSE: TEN

2001 Annual Report - Tenneco Inc.

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