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CHICAGO, July 22 (Reuters) - Tenneco Automotive Inc. , one of the world's largest makers of vehicle shock absorbers, on Tuesday said quarterly earnings rose by 26 percent, above expectations, sending its shares 13 percent higher.
Lake Forest, Illinois-based Tenneco, which also makes exhaust systems, said second-quarter net income rose to $24 million, or 58 cents a share, from $19 million, or 45 cents a share, boosted by the strong euro and higher sales of emission-control products in Europe.
Three analysts polled by Reuters Research, a unit of Reuters Group Plc, had an average estimate of 5 cents a share. Their estimates had ranged from 3 cents to 6 cents a share.
Revenue rose to $998 million from $948 million as the weaker dollar boosted results.
Without the impact of favorable currency translation, revenue would have declined to $922 million, hurt by weaker sales of replacement parts, the company said.
In Europe, sales to automotive manufacturers increased, while North American revenue declined due to weaker vehicle production and softer sales in the aftermarket, Tenneco said.
It said increased working capital and tax settlement costs contributed to negative cash flow of $35 million in the period, but it said cash use is typically higher in the second quarter ahead of the spring and summer selling seasons for the aftermarket.
The company closed a $350 million offering of 10.25 percent senior secured notes in the quarter, using proceeds to pay off $87 million of borrowings under its revolving credit facility and to repay $251 million in senior term loans.
Shares of Tenneco climbed 57 cents, or 13.48 percent, to $4.80 on Tuesday morning on the New York Stock Exchange.