Exhibit 99.1
TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF INCOME
Unaudited
---------
THREE MONTHS ENDED SEPTEMBER 30,
(Millions except share and per share amounts)
<Table>
<Caption>
2004 2003
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Net sales and operating revenues: $ 998 $ 914
============= ============
Costs and Expenses
Cost of Sales (exclusive of depreciation shown below) 798 (a) 727 (c)
Engineering, Research and Development 22 18
Selling, General and Administrative 91 91
Depreciation and Amortization of Other Intangibles 42 40
------------- ------------
Total Costs and Expenses 953 876
============= ============
Other Income (Loss) (1) -
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Total Other Income (Loss) (1) -
------------- ------------
Income (Loss) before Interest Expense,
Income Taxes, and Minority Interest
North America 31 32
Europe 6 (a) (3)(c)
Other 7 9
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44 38
Less:
Interest expense (net of
interest capitalized) 35 34 (d)
Income tax expense (benefit) 2 (b) (2)(e)
Minority interest 1 2
------------- ------------
Net income $ 6 $ 4
============= ============
Average common shares outstanding:
Basic 41.7 40.6
============= ============
Diluted 44.3 42.2
============= ============
Earnings per share of common stock:
Basic $ 0.15 $ 0.11
============= ============
Diluted $ 0.14 $ 0.10
============= ============
</Table>
(a) Includes restructuring and restructuring related charges of $2 million
pre-tax, $2 million after-tax or $0.04 per share. The entire charge is recorded
in cost of sales. Geographically all of the charge is recorded in Europe.
(b) Includes a $1 million or $0.02 per share tax benefit related to the
resolution of outstanding tax issues.
(c) Includes restructuring related charges of $1 million pre-tax, $1 million
after-tax or $0.02 per share. The entire charge is recorded in cost of sales.
Geographically all of the charge is recorded in Europe.
(d) Includes a pre-tax reduction of $2 million, $1 million after-tax or $0.02
per share related to debt issuance costs that were deferred on the senior debt
we paid down with the proceeds of the $350 million bond offering.
(e) Includes a $3 million or $0.09 per share tax benefit related to the
resolution of outstanding tax issues.
TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF INCOME
Unaudited
NINE MONTHS ENDED SEPTEMBER 30,
(Millions except share and per share amounts)
2004 2003
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Net sales and operating revenues: $ 3,146 (a) $ 2,833
======= =======
Costs and Expenses
Cost of Sales (exclusive of depreciation shown below) 2,502 (b) 2,249 (e)
Engineering, Research and Development 56 50
Selling, General and Administrative 302 (a)(b)(c) 276
Depreciation and Amortization of Other Intangibles 131 120
------- -------
Total Costs and Expenses 2,991 2,695
======= =======
Loss on sale of receivables (1) (1)
Other Income (Loss) (1) (1)
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Total Other Income (Loss) (2) (2)
------- -------
Income (Loss) before Interest Expense,
Income Taxes, and Minority Interest
North America 111 (a)(b)(c) 109 (e)
Europe 17 (b)(c) 7 (e)
Other 25 (c) 20
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153 136
Less:
Interest expense (net of
interest capitalized) 104 103 (f)
Income tax expense (benefit) 11 (d) (1)(g)
Minority interest 4 5
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Net income $ 34 $ 29
======= =======
Average common shares outstanding:
Basic 41.3 40.3
======= =======
Diluted 44.0 41.5
======= =======
Earnings per share of common stock:
Basic $ 0.84 $ 0.72
======= =======
Diluted $ 0.78 $ 0.70
======= =======
(a) Includes changeover costs for a new aftermarket customer acquired in the
first quarter of $8 million pre-tax, $5 million after-tax or $0.13 per share. Of
the adjustment $6 million is recorded in Sales and $2 million is recorded in
SG&A. Geographically the entire amount is recorded in North America.
(b) Includes restructuring and restructuring related charges of $12 million
pre-tax, $8 million after tax or $0.18 per share. Of the adjustment $2 million
is recorded in SG&A and the remaining $10 million is in cost of sales.
Geographically, $3 million is recorded in North America and $9 million in
Europe.
(c) Includes consulting fees indexed to stock price of $4 million pre-tax, $3
million after-tax or $0.06 per share. The entire charge is recorded in SG&A.
Geographically $2 million of the charge is recorded in North America, $1 million
in Europe and $1 million in Other.
(d) Includes a $6 million or $0.14 per share tax benefit related to the
resolution of outstanding tax issues.
(e) Includes restructuring and restructuring related charges of $7 million
pre-tax, $4 million after-tax or $0.11 per share. The entire charge is recorded
in cost of sales. Geographically, $3 million is recorded in North America and $4
million in Europe.
(f) Includes a pre-tax expense of $3 million, $2 million after-tax or $0.05 per
share related to debt issuance costs that were deferred on the senior debt we
paid down with the proceeds of the $350 million bond offering.
(g) Includes a $14 million or $0.36 per share tax benefit related to the
resolution of several tax issues.
TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES
BALANCE SHEETS
(Unaudited)
(Millions)
<Table>
<Caption>
September 30, 2004 December 31, 2003
---------------------- --------------------
Assets
Cash and Cash Equivalents $ 203 $ 145
Receivables, Net 511 (a) 442 (a)
Inventories 363 343
Other Current Assets 198 175
Investments and Other Assets 693 579
Plant, Property, and Equipment, Net 1,070 1,111
---------------------- --------------------
Total Assets $ 3,038 $ 2,795
====================== ====================
Liabilities and Shareholders' Equity
Short-Term Debt $ 20 $ 20
Accounts Payable 667 621
Accrued Taxes 22 19
Accrued Interest 42 42
Other Current Liabilities 237 191
Long-Term Debt 1,403 (b) 1,410 (b)
Deferred Income Taxes 171 119
Deferred Credits and Other Liabilities 351 292
Minority Interest 24 23
Total Shareholders' Equity 101 58
---------------------- --------------------
Total Liabilities and Shareholders' Equity $ 3,038 $ 2,795
====================== ====================
</Table>
<Table>
<Caption>
(a) Accounts Receivables net of: September 30, 2004 December 31, 2003
---------------------- --------------------
Accounts Receivable securitization programs $ 148 $ 123
Receivables collected under advance payment programs $ 122 $ 99
</Table>
<Table>
<Caption>
(b) Long term debt composed of: September 30, 2004 December 31, 2003
---------------------- --------------------
Term loan B (Due 2010) $ 397 $ 400
10.25% senior notes (Due 2013) 490 491
11.625% subordinated notes (Due 2009) 500 500
Other long term debt 16 19
---------------------- --------------------
$ 1,403 $ 1,410
====================== ====================
</Table>
TENNECO AUTOMOTIVE INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Millions)
<Table>
<Caption>
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------------------------
2004 2003
------------------ -----------------
Operating activities:
Net income $ 34 $ 29
Adjustments to reconcile income
to net cash provided by operating activities -
Depreciation and amortization 131 120
Deferred income taxes (12) (17)
(Gain)/loss on sale of assets, net - 1
Changes in components of working capital -
(Inc.)/dec. in receivables (66) (46)
(Inc.)/dec. in inventories (22) 43
(Inc.)/dec. in prepayments and other current assets (21) 3
Inc./(dec.) in payables 55 31
Inc./(dec.) in taxes accrued 5 (25)
Inc./(dec.) in interest accrued - 19
Inc./(dec.) in other current liabilities 21 (15)
Other 10 19
------------------ -----------------
Net cash provided by operating activities 135 162
Investing activities:
Net proceeds from sale of assets 12 4
Expenditures for plant, property & equipment (87) (83)
Investments and other - (5)
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Net cash used by investing activities (75) (84)
------------------ -----------------
Financing activities:
Issuance of common shares 6 -
Proceeds from capital contributions - 1
Issuance of long-term debt - 350
Debt issuance costs on long-term debt - (13)
Retirement of long-term debt (6) (277)
Net inc./(dec.) in short-term debt excluding current
maturities on long-term debt 1 (119)
Other 1 (1)
------------------ -----------------
Net cash provided (used) by financing activities 2 (59)
------------------ -----------------
Effect of foreign exchange rate changes on cash and
cash equivalents (4) (10)
------------------ -----------------
Inc./(dec.) in cash and cash equivalents 58 9
Cash and cash equivalents, January 1 145 54
------------------ -----------------
Cash and cash equivalents, September 30 $ 203 $ 63
================== =================
Cash paid during the period for interest $ 106 $ 79
Cash paid during the period for income taxes $ 15 $ 41
</Table>