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Stock Strategist

Tenneco's Technology Drives Growth

Innovation enables increasing dollar content per vehicle and bolsters margins.


 Tenneco (TEN) supplies emission- and ride-control systems and products to more than 60 vehicle manufacturers for use on nearly 300 vehicle platforms. Automakers demand technologically advanced emission-control systems to support their efforts to meet ever-increasing clean-air legislation around the world. Ride-control products are essential to the character of a vehicle and play an important role in safety, steering feel, and ride comfort.

The company holds one of the top two spots in each of its product markets. Tenneco’s total revenue is well diversified geographically, with around 45% in North America, one third in Europe, and the remainder from South America and Asia-Pacific. New technologies combined with a global presence enable Tenneco to increase its dollar content per vehicle as well as its penetration into new, adjacent markets.

Richard Hilgert does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.