TEN - Earnings call transcript Q4 2020

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Operator

Good morning and welcome to the Tenneco Inc. Fourth Quarter and Full Year 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to Investor conference Relations. like Kwas, to now President, Vice would turn over the Rich I

Rich Kwas

related presentation and Thank include today we is website. quarter measures, and Please released financial and available information our information. you good section that fourth on XXXX morning. on the be earnings non-GAAP of prepared aware to will our corresponding Earlier Investors today financial remarks The our results other of discussion our Unless our on attachments and all available refers our are are press EBITDA EBITDA say release GAAP reconciled specifically adjusted earnings The margin. margin EBITDA. materials. in measures earnings website. it which with otherwise, to adjusted we value-add materials other earnings When release means described

conferences forward-looking include statements. the Conference on could two will on our in Finance term, to will comments be Autos We Morgan and Please actual in forward-looking near March Leveraged that in the our of speaking Conference materially statements. XX some differ X. February of any mind look results we participating including High those & our from projected you. of many J.P. forward virtual the Global Yield keep with In Wolfe Research Additionally,

will CEO, with Kevin Baird your an will and Matti before Masanovich starts review we enterprise questions. COO, concluding Brian remarks And overview quarter balance then today Matti will performance. our XXXX Kesseler in outlook. take will of discuss for XXXX. agenda segment summarizing our accomplishments provide Brian sheet performance Our provide business CFO, our results. and fourth our

Brian? Brian. Now, over I will to it turn

Brian Kesseler

further strong of largely the development Starting took of performance-driven at on the actions year year, shareholder and driven and by our Thank you, on four. page welcome. to number creation Rich. We value Good we accelerating aimed the during culture. a everyone, ended note, a morning,

some overview actions. you quickly of an of me Let provide these with

of the Masanovich. Officer, total Operating a appointment oversee a First, Financial single a CEO to Baird; appointed and and we revitalized enterprise Matti Officer, our Kevin leadership addition the of new Chief team, with new Chief

We industry Chairs. This also and the new also of enhancements four both are Chair Board, Committee customer new independent meaningful this new expertise. appointment included financial term. organization a near unifying Under long leadership with a the both our and refresh a These to with independent enhanced shareholder we refreshed directors, governance clear refreshed and Board standpoint. value, for the team mission in and both and with drive are

margin benefits, initiated ahead Second, XXXX continues savings, with prove and cash our cost projects to program generation on all yielding Accelerate+ expansion in or structural successful, schedule. of

to target continue generated This debt result regions position of $XXX the end we an the was declined where in savings We and team revenue significant serve. by million XX%, spreading as rate run flow the in pandemic of improved the our cash million environment accomplished year-over-year XXXX operating $XXX and across VA XXXX. net by nearly in a

in temporary and team delivered of reducing we successfully have resilience and environment. volatile to Tenneco I with workforce, of XXXX of operations. Since global operating the facilities. a on measures. pandemic, range at of operational health onset of actions, our the in and a proud SG&A We these costs, which to the business implementation aimed COVID-XX-related remained safety implemented challenging the of us by outside actions, the our allowed coupled impacts Third, am team, Supported the both manage focused of solid ensuring rapidly our our results cost

five. page to Turning

overview performance. an walk year our me full Let through of XXXX

Our revenue XXXX with billion, was revenue. $XX total $XX.X value-add of billion

regions. operating segments, annual our end markets we you see, can value-add As have by and down broken revenue

geographies weather XX% the and lines, in advantage impacted scale XX% other at at Tenneco spread North followed China through closely Our by year. contributed across approximately for regional us, our different allowing Europe continue markets markets to contributor XX%. as diversification America was product revenue value-add the markets and be cycles largest to end X%. up an the making end our and effectively of it regions and pandemic

revenue as compared over Total from XXXX million billion, well with value-add $X.X OE the XXXX nearly product billion, lines. the a is to $X.X and value-add up vehicle of You improvements to and and of cash the the the XX% up as can for year-over-year chassis of internal delivered $X.X reduction vehicle revenue reduction company's significant up light made see period. by debt of revenue. to achieve suspension million. that cost run Accelerate+ combustion quarter. breakdown leverage up of the year-end, by OE XX%. the a of CTOH fourth product about of savings prior rate basis our ratio. $XXX the points the OE million at position approximately with applications important program XXXX and quarter, Supported light strong $XXX for It margin $XXX XX% to performance XX%. was half generated XXX end highlight at and chart. year-end. billion net we the bottom-left performance made and OES flow and team value-add debt up industrial in Aftermarket liquidity XXXX At the engine on And was third at unrelated Year-over-year made year, meaningful operational year-end, the engine vehicle light emissions made was liquidity up was second year XX% from

turn I Matti to efficiency Matti? financial of capital been fully will million our year performance. working improvement has now $XXX realized of is through fourth and quarter to walk our Additionally, over year-end ahead at full it target schedule. a

Matti Masanovich

Brian. you, Thank

from cash billion. brief of debt. We diversified of quarter expansion $XX currency XX% overview substrate our fourth million. excluding performance. a of was generating revenue of $X.X approximately Turning to our for impact and Revenue is page margin benefited flow portfolio net delivered reduced X a This and year-over-year up strong inclusive

X% and strong million times and application region QX reduction a service. net our the to free cash of up free We X% for fourth quarter. value-added cash light million quarter of by Two in of debt production, an up the $XXX and industry adjusted XXX a $XXX points fourth an in strength revenue EBITDA portfolio. highlight $XXX revenue revenue, on the increase XX.X% EBITDA billion. year-over-year diversification and compares X.X flow performance This product in delivered was was and flow basis in $X.X available year-over-year up value-added to debt to breaking drove currency. Adjusted XXXX. margin Our million the the charts quarter, value-added margin of down vehicle from quarter, This the reduction billion leverage excluding in $X.X our

X let's quarter our to a at page for Now look fourth turn enterprise performance.

the revenue previously, As the I light fourth revenue saw by volumes revenue Volume impacted our $X.X industrial up value-added we grew quarter and solid commercial X% we savings. the on mentioned a quarter, of of and aftermarket year-over-year vehicle of operating the truck Global mix and leverage in and essentially XXXX. Again, were and value-added positively value-added the saw benefit higher flat. X% in off-highway improvement Accelerate+ from in strong EBITDA quarter. driven adjusted billion

and also fourth quarter, lower approximately performance non-recurring the net asset recoveries million in Our tooling primarily aftermarket sales of operating rebates. $XX benefits includes

costs. million Our corporate adjusted figure EBITDA in includes $XX

Chief to Operating regarding turn Kevin details it for Baird I'll performance. Officer, our more over Now Kevin? our segment

Kevin Baird

volumes seasonality was business Page stronger-than-normal lines also million. basis, to was $XXX On at representing constant about sales the Motorparts flat, product excluding our X. strategic decision a certain with revenue start for quarter year-over-year aftermarket I'll exit certain revenue on regions. Fourth basis On a fourth flat quarter. were currency Matti. in sequential the Thanks,

securing annual During the EBITDA margin including and operating XXXX was $XXX maintained team restructuring SGA&E, benefit year-over-year, savings million $XX focus year million. revenue the and inventory $XXX incremental in on of from was adjustment. up million points the performance quarter and about customers Motorparts distribution, the in XXX of a basis Adjusted prior non-recurring serving driven XX.X%, EBITDA by strong manufacturing, adjusted

vehicle business. We through a in the driven on higher on to QX currency, and noise, page with plan. Adjusted EBITDA quarter volume. company's came days higher Performance. million was up in by OES XX by vibration, was a adjusted Technology challenges. late chain for supply down in turn the $XX details growth performance quarter. EBITDA inventory driven North $XXX strong, target reduction to meeting was on ride operating the of Suspension as Advanced drive in American the was volumes of and and year an contributor also was capital year-over-year year-over-year working business million business. X% Motorparts Fourth aftermarket ahead Conversion constant sales in to control significant volumes from Ride well Please hand the as The and margin able harshness primarily managed business QX light Lower of X.X% our revenue

network American even difficult. COVID at closed was of plants two journey is a the of and challenging quarter, more North end second control stabilization it the made second the While the of ride has

We expect begin operations XXXX in and to realize restructuring to savings. improve to

During NVH vehicle incremental three and growth platforms. business XXXX, battery business with we and We one in wins our manufacturers. to Advanced invest core secure launched Technology continued Suspension XX programs global electric in

to will revenues XXXX of items. billion in OES facilities Adjusted to the regulations programs continues in content debt and India in Clean China its year initiated launched $XXX to new expanded in regulatory turn and Air XXXX, revenues X%. and and value-add represented improvement. volume versus increase by with gas VI Please back period. sales the strong XXXX, and basis. in off-highway applications, point continue X% points prior was strong XX asset the XX from on XX% year Operating and India. call on by strong advancements restructuring regulations XX, strength in and turn base. versus from liquidity performance. Light performance value-add in volume currency period a revenues and XX% bearings, replenishment of year from page light QX Value-add for to EBITDA savings and to both the Turning revenues $XXX the revenue a increased vehicle constant prior XX% industrial programs for Powertrain Bharat during technology were which At benefit increased of sales. prior restructuring measured steel ongoing truck piston year-over-year. of XX In declined regulations. China related of increased grew China fell were details volumes light-vehicle million, XXXX. benefited related to Clean gains year-over-year, continuing inventory revenues drivers position. sales on XX currency, Air and Commercial Matti up leverage now a and closed the truck, control X% Powertrain to our XX%. EBITDA to leverage, page the increased primary margin adjusted increase ramp-up one-time to EBITDA emissions $X.XX cost basis were a Profit fueled Adjusted value-add content VI year-over-year launches and by constant Commercial year-over-year gains off-highway, we X% pursue new OE savings basis results. couple Powertrain. while XXX was The discuss opportunities two an and out growth. service XX% vehicle boosted earlier million, of led posted projects I'll support lean

Matti Masanovich

year with balances available of $XXX to XXXX capital the on billion Kevin. improvements, down quarter, increased of generated paid In the XXth, Thanks $X.X facilities of fully margin operations end from and our $X.X and million spending, we expanded by to capital and revolver billion credit September cash disciplined At consisted revolving working $X.X liquidity cash billion. fourth compared driven performance. total

of debt was almost prior net $X.X billion, XXst, December $XXX reduction million the year. compared a of to As

to on the us as focus debt capital significantly enabled relentless part capital Project one-time $XXX reduce us million reduction efficiency to net working and achieve Accelerate this year. allowed Our improving of

progress segments by business the driven our to way. with sales investments Motorparts XXXX, inventory as capital goal year cash XXXX. almost made of our a the we reduction Trade percentage the capital leading optimize to end year. improved working to XXX points We As a prior compared million reduction to intensity made in of of of reducing basis performance, $XXX this compared part capital as X.X% across XX%

XXXX tightly of improved while our our the capital profile invest and quarter, $XXX will we to senior used our by platforms, debt due notes expenditures. managing to In secured XXXX million fourth proceeds continue notes. overall core maturity redeem We January the issuing new our in in level growth

conditions extend be to monitor maturity We actively our credit opportunistic to will continue schedule. further and

to XX. Turning page

financial guidance. providing resumed formal have We

We expect in good and margin expansion XXXX. growth revenue

this midpoint, Our XX% value-added $XX.X to $XX.X represents the guidance is revenue At billion year-over-year. of growth billion.

Our vehicle assumption million revenue range approximately XX of employs production units. a global light

We using Vehicle IHS are Light the February of for Production the first Global Forecasts the half year.

second the more in Europe. embedded for IHS have assumptions than we half, However, conservative particularly,

outgrow modestly to Motorparts our expect We businesses our OE-centric business.

a XXXX a the value-added At margin, billion. $X.X billion XXX Our adjusted EBITDA increase range XX% reflects year-over-year. basis EBITDA point to midpoint, is $X.X forecast the

our year, XXXX our reductions in declined and about you in OE sales the think XXXX. North related in pandemic incremental be Europe significantly the strongest spread. the to cost modeling was margin of March is measures As of XXXX first the America quarterly relatively and Recall cost-savings all quarter China were half businesses our QX. anticipated saw quarter back that base special no to of the start first the Further the normal comparison were our of effective. There in

were of XXXX, savings keep performance will XXXX that that and $XXX margin please in QX in temporary there million benefited Beyond of mind QX in that XXXX. normalize QX our

to by debt year our to the fall range Accelerate+ in $X.X will on We of be our year-over-year XXXX. achieving million. billion We $XXX way our year rate by million to forecast the to million the program expect net run end end. $XXX expenditures estimate capital We from $XXX continued savings

expect to XXXX. We million million $XXX taxes and between cash $XXX fall in

half. a the At see our half a the As inflow reminder, with a year-over-year. midpoint, followed we second you'll middle in of In billion outlook. significant almost page, revenues estimate first the is the of value-added QX cash by up outflow the typical our XX% $X.X flow in seasonal

pandemic in revenue impacted to OE-centric related Last be second our the revenue primarily the QX. its the patterns directly post year-over-year by chain growth weather and adverse due businesses US is to quarter. supply until expect not expected We recent relatively year's strong challenges. was to Motorparts flat

for range reflecting carry performance back Our adjusted from we the margin momentum to is now to midpoint $XXX remarks. call into value-added XXX $XXX XXXX EBITDA EBITDA our a million. of range translates Brian point basis than turn million the X.X% positive XXXX. year-over-year to The more as I'll concluding increase

Brian Kesseler

and once in the help global full both of page to major fourth and again focus. our turn has pandemic of many quarter thank face strong deliver and Please the facilities be will continue inside year to our for to onset safety XXXX of In results. so Matti. want to I of XX. team Thanks, the Since health closing, Tenneco the the they and outside did all been challenges our workforce

Looking positive we performance momentum. ahead, to continue build

cost generation savings in yielding Our margin performance with successful proved disciplined focus expansion XXXX and cash our program Accelerate+ benefits. structural

maturity position intensity, by strengthened and capital balance and enhancing reducing our optimizing have We profile. sheet and leverage ratio improving our debt our liquidity

have XXXX and consistent providing formal guidance will expect we gradual from We vehicle return in production forecasts light XXXX, resumed by industry a with recovery to financial And levels. anticipate that the we pandemic. XXXX

which balanced a global and value in for enable positions us shareholder market priority our drive diversified Our organization. and operating each to leading creation, is portfolio segment top

are long-term further Ride opportunities We our positioned positive to we in Motorparts well momentum, our and segments. capitalize as our in core invest on growth Performance

debt growth margin optimization reduction. and customer now deliver I core have And team, the time questions. join and taking will appreciate you line Clean Powertrain focus on investments fund We continue see our core to and answer expansion, our today. debt same time, and as value. we advantages assets we focus the operator, significant We are to cash potential and significant At we reduction. confident generation to on the shareholder near-term strategic to cash business generating continuing with long-term Air the us And any we am

Operator

begin will now the be of The [Operator from Please session. go ahead. question Capital question-and-answer Instructions] will Picariello We Markets. James KeyBanc first

James Picariello

Hey, good morning guys.

Brian Kesseler

morning. Good

James Picariello

can appropriately global the just with as of have February regional has assumptions, commercial thinking feel is half. those us about its I how know you then breakout And first the do Thanks. I'm sales though you your And you and for the within starting remind Just second markets this what you for embedded chip as conservatism shortage half. vehicle for mix? for And market off-highway about the are thinking year? accounted forecast? your IHS

Brian Kesseler

to a the bit here tell. of the little So it's still think in February. chip IHS, hard we're sitting Obviously, I end shortage near

first for least at quarter we've window. pretty good the So a got

of industry We first would many the that customers maybe by believing close. and semiconductor end So us quarter that to this know have first be second. for the that flowing see I be we the behind the think quarter. our into the issue going it's of been

on bit the be IHS on more we the substantially. So IHS than half, shows. pace a conservative our and most might IHS, in we're that little there Europe at second downside as little quarter probably not of then a the in conservative noted we're But recovering second

as far in And Air. the becoming the China with truck in larger for that not America. us as larger VI and China for Clean mentioned Commercial vehicle in big heavier Bharat for As commercial Europe commercial we North Powertrain and both is space, coming a is of truck. the VI and is makeup us

James Picariello

yes Motorparts the No, for helpful. no recaptured consider have Motorparts. also this be then Got backdrop that thinking right? for business to should it. gains And share So, demand we business how has that's the then just about year? yes, we aftermarket And

Brian Kesseler

into work business COVID didn't the until lot business good the We some globally. a XXXX quite we one commentary, in were lower which drivens, Yes. which a miles driven. Kevin from was Well signals a is as QX his bit being -- little really reduced, Motorparts about is highlighted QX but because booked with miles Miles But standpoint. in did about the primarily cyclicality Usually QX. is down bit in drivens specifically higher watching of The a team fourth in flat North we're a real bit demand carefully demand. see so quarter -- of our impact revenue miles generally QX flat. our America greatly

incremental last drive we and momentum Kevin year kind highlighted, that go. the continue we to of of book added as million we As about revenue to $XXX

on business. bullish Motorparts very still we're our So

James Picariello

flat the quarter that your or comment was demand Thanks. for first -- revenue? was And that that year-over-year the And or was sequential? on

Brian Kesseler

that wasn't and the year's -- about in impacts group. then was end see all of in comparatively. QX was was it bad for over But major in beginning That of Europe primarily impacts so It year-over-year really was yes, which March last the to America. the we -- very, our started to the very where Motorparts flat, QX very, moved North

is to we'd in to Motorparts And So our from expect standpoint. up quarter the back cyclical a QX strongest normal. get generally

James Picariello

Thanks.

Operator

Markets. Capital be of The will next from question RBC Spak Joseph

Joseph Spak

one Hi. Good first just morning, clarification. the everyone. Maybe of of sort point

said that was non-recurring $XX there quarter, sales. asset that I including million helped think in was you performance about the

So could saw how that I tell the was filing, us I the were between segments. guess of wondering if maybe asset sort I And some the in reconciliations were down noticed you adjustments out. sales when because that of I broke just about I'm the curious taken sort there

So left some why the in were number?

Matti Masanovich

depends what selling. it on Well, we're

a it's if PP&E gets it facility it But it's asset So in. a removed. routine sale if stays sale

from. came it where that's essentially so And

segments non-recurring rebates. Powertrain the of One mentioned was the we of the -- that -- the period. items obviously, benefited rebates in was -- aftermarket one and There's other

benefited So obviously as well. Motorparts

Joseph Spak

clarification. want of margins. just I lagging performance. the for some of then sort to in other guess segments that of segment I -- Thanks the about margin since out Ride still talked it's Okay. headwinds the And on bigger to picture you some diluted of zoom that some

that get that them So segment plan you're target for? looking what's the level what's higher? And bigger-picture real the acceptable to margin with

Brian Kesseler

opportunities two and that that for see. inside opportunities two growth positioned are the with really are well segment and challenges megatrends. Ride start So then we the -- growth really performance very there the solid I'll

in vehicles. very there is materials business on relevant growth Suspension specifically highlight electric and growth wins our Advanced story relevant battery positive. business lot very NVH And Kevin performance a of Our here Technology

very, facility a X.X the the conventional lot down of at worth challenge with of but end North taken of team where control of shock last in cut in we rationalized is footprint really it's can half, of years. We've imagine remaining as out the normal any that capacity which two, of couple with -- the what QX, the XXXX, operating you periods business shut QX, story. plants year the Ride business moving second When the to deal production the We two our there into what down facility For second a American in plants to it's in very over the really essentially times. beginning four especially at the end so business more very a that's first had beginning plants' And you're during very QX quarter. the drove margins. COVID and time

kind ride year. hotspots our regional of expect in We and business America to a there EBIT be will we and in position, percent that overall of we would -- perspective -- get again then of when braking in and lower-technology-type a And businesses X-ish starting up our there's from the see ride expect the control higher to move an businesses. control technology-driven be business, range From couple meaningful improvement kind North on two that addressed. that were this braking normal then

the you those NVH our we as and so above in X% and term. as longer more And more number get AST of mix business might and that out grows

Joseph Spak

increasing. the the highlighted Okay. the your lot. cetera. may do in migration potential market Board for guess to we're I electrification is and the sort those just know looks more where fund risk of of line destruction? versus a debt good I value and just to portion to businesses better right some you you Thanks which businesses. potential the contraction I businesses a could bigger-picture on And maybe weigh guess the business world sort of Air If with not ICE Powertrain prepared it remarks pace And I on and it the growth contracting those multiple on onto vehicle of understand and multiple in -- And does of lead wanted this But optimization one of that but reduction. you and debt because on like holding light about equity think I how et should value, is of continued not the fund of tied the strategy actually to how agree that I you're ask using reduction. investment, rely some holistically create to Clean that effectively this theoretically also a but

Brian Kesseler

every you it's Well, topic value for it's doing today portfolio day imagine as Every of to us part our portfolio we're at much a strategic as looking can Yeah. has pretty portfolio that's makeup. – today. in a the our what

of our Air our really the great lot engines focus Clean have value bring AST to of debt and our business. significantly reduction growth net and with cash on the to at in and business. businesses Powertrain debt mentioned, our core a are they the where down And we near net we're that you As reduction, here us NVH to platforms drive highlighted midterm. got in Also, we've we Motorparts that today

from helping And pick growth they're and our business. a really higher-growth also that that to so up into percentage fund

Now, but the make inside the is the got electrification the ICE move But that's growth fleet. the what of wherewithal Ride vehicle, in durable got we in adoption as creation core the XXXX our got of term, we of do near those got Again, our plans and for very pace of we technology significant forward. see clear we've reduction, mix need – in stuck Hybrids its also, and Air going in and XXXX Motorparts not we to to a commercial in nucleus significantly. what going at portfolio evolution us, penetration long-term one. we be We've we the hear really a shareholder truck Clean portfolio through the are we rates good now lot we've its growing see the to rates have marketplace light business Performance Powertrain for the at be sand with a have and which for and forward. right light we've slower BEV off-highway in on are value what and sure debt potential accomplish for pace what believe heads vehicle. and that both going full businesses But we than to view our

and make As of decisions to portfolio are the our portfolio the to, mix prepared different the over evolve, value parts change our time. will in we we of

Joseph Spak

you Brian. much Thank very that, for

Operator

be JPMorgan. from The next question of will Brinkman Ryan

Ryan Brinkman

via of on at down debt the businesses of you're of for then accelerate XXXX, suggesting four I been that being for separation still looks the is to to your guiding three sale But for the net or seriously does prior given think something in this optionality from the end you the Can ratio context around the in in about $X.X billion billion on Congrats of end book that pressure us Hi. It to businesses – is of at the is take at separation stronger net how XXXX again close quarter. leverage the remind leverage secured different. moving taking of has my to evaluating of the around to that that of X.X discussed to XXXX you for spin? Thanks the certain questions. and that guidance, to you're calls? just, maybe are a earlier here rounding X.X looking like I at leverage midpoint versus how $X.X net think the off a leverage And the calculation point? to FCF just figures about do these XQ and or guidance then considered today. from realize think the leverage, rounding

Brian Kesseler

lot a there. Well,

remind me just miss let pick and end here if I a forward. from part, And So please the me. up move

we businesses clearly established our in portfolio. have very So some non-core

the long we're term. that getting better in in our sit mean doesn't our bit portfolio ratio because bit a should a better leverage it Just – in little

we'll we sales That's structures businesses more put the in to and non-core will markets see asset strategics get more when keep debt work to coming one. meantime, We the the for reduction, to deal a amenable using debt. But those in. little Two. reduce bit

And and advantaged somewhere together question, of we ratio. at the ratio spin to X.X of But for if and that I more that will the current COVID-related believe, severity target before different enterprise. and the parts becomes the direction create value coming lens going long-term separation leverage what it's actually of were kind sales we the in now, that address you shareholder to of sure goes going in debt of to strategic do. of were then term As the or haul. state. We're spin make downturn the the a related below out near-term the value-creation and all the X be downturn looked I'm down and different we the having the avenues one business to value intent shareholder as we always nearer to I more consider, original in enhance that to business, for It the of by looking in to two of this were get long hovering the we'll more But in options the we us asset through realistic. last year capability for its prudent tell that's option shareholder will the

Did And so right of we the the shareholders for want decisions we're any making sure both to miss future. for I now the make and question, part Ryan? that

Ryan Brinkman

at might question production. something that Thank directly the relative XX% of around business light onset not wanted combustion. then a to to next the change the vehicle And of I business No. was That comprehensive think your response. internal to is I your you. the have global mentioned call ask you related And like performance great just of combustion-related internal in

XX% your up segments, revenue adding three your and of in result in Performance Clean those Ride Air would Just Powertrain and about divisions.

the I not of of to the quarter increased was related Maybe just from fourth of aspects like year-over-year global the can internal like light change But combustion. revenue business Performance perspective of that that in noting of that business XX% just non-Ride some seems a I'm production, in mix of sort did the at look there's non-internal-combustion-engine-related kind those even vehicle if businesses. X.X%. the its us versus you XX% X.X% remind clearly are So volume

So cetera, fourth just your rate out trying et especially the or even to in you on XXXX line on you intend to I wanted you going anything what melting is, that. forward, the cube pressured to change the vehicle weren't below production. if longer-term your ice to to the know the but what anytime production? And track communicate about for change in Be figure today your targets is, soon, to quarter. the relative internal-combustion-related curious in like then where relative seems share ability thoughts It you're in light call modestly businesses expecting don't for melt

Brian Kesseler

Yes.

So discussion revenue carve electric the product kind That internal the it OE internal let of vehicle. light and of to light in our combustion engine internal me lines. in engine vehicle engine battery the in XX% One those – full two. vehicle, separate is combustion technology shift maybe is Powertrain combustion

continue – and Clean half Our that growth, the have margins businesses business booked commercial to the in are Powertrain off-highway and middle truck of through strength, just are and into decade. great both Air the back

flow outpace content, up commercial you And the China, each both Bharat Kevin China as off-highway is launches highlighted, and us. and for content when cash commercial so in for better and that India look in truck came for margins VI, better the of – that truck for VI space six XX-plus programs us off-highway

Performance we Ride our investment And Obviously our up growing. where is growth technology. are content that core meaningful of and those are platforms to of a Suspension lot Powertrain growth core driving a for Advanced is platforms. agnostic where NVH Technology part in that's So

makeup. the that's So

alternatives. our a As as side we've leverage we broader for Motorparts we would grow commercial like of as to two X.X is over that see more ratio to comfortable, get we much we where talked more, to about and strategic more truck really we're range we options XX% as to get Ride continue time. shrink there And expect portfolio, this Performance we grow the get different where off-highway more, our then then

Ryan Brinkman

And Great. then just for Okay. me. lastly

a you've course including maturities. number the those push-out of of that received been the popularly side on have balance XXXX sheet steps Of taken

next. the going XX. months need be XX update at done here, the if more And in but or just might what interest know normalized first to a of or just the A there's at call deck don't that what Maybe we can else anything be environment ago then if Maybe I relative nine the looking might cetera. be. remind Loan on during it's distribution profile you the conducive debt et on could Slide forward might could Term on us that maybe Slide really update given much terms yes, you if Just did say sort of debts looking that then expense. assume

Matti Masanovich

Matti. it's Hey Ryan,

is the interest million Our a million expense $XXX in around and year. to $XXX

we in what would XXXX. that's expect So

the is. say be what I can it we with market, will is, -- as way far the As high-yield opportunistic

did, And are we've further like of as to debt at try we'll done so we and to opportunistic these the 'XX, our -- if some addressed. and open, as always look maturities, markets get we look taking to the moving 'XXs maturities out we'll continue at be

and as And so, that benefit will think only think shareholders well. us I I our

point. So far at as this I that's as go can

Ryan Brinkman

Thank Very Okay. you. helpful.

Operator

Bob next JPMorgan. The is Instructions] Amenta [Operator of question from

Bob Amenta

hi, Yeah, thanks.

when things pension, slide those Just a quick year? have million that $XXX cash $XXX going just uses of you heard taxes, ones. couple Can cash say repeat Matti, said you I missed, but to cash XX, million might before this CapEx, you real right were sorry, you I for maybe reorg. through

Matti Masanovich

Yes.

million, to I flow. that cash we gave it only of other $XXX CapEx $XXX on think, said a $XXX million $XXX was million that's I to the And million. guidance

Bob Amenta

is that same Does is Is over cost so sure And the if Okay. back to restructuring $XXX the while about cash to I $XXX $XXX you apples-to-apples? not, on there's and talking when then, same was years. mentioned mean go or you remember pre-COVID million the can't that guys just million I'm that in left A cite thing. making it I'm XXXX, that or two not million achieve, thing?

Matti Masanovich

$XXX million XXXX investment $XXX end an million We've get of exit to EBITDA restructuring make the at got our run about to more perspective. to of rate from

it be that in question XXXX. So, around from would you're think million perspective, $XXX asking is marker a restructuring the I cash

Brian Kesseler

Yes.

bit XXXX, little a as prioritize quicker that's so higher payback in the we period. And

not into bit $XXX it's $XXX million jumping we're original it, to now and a would So, to the the closer million million. higher, $XXX much, is little as $XXX correlate probably so but million, now which

Bob Amenta

And $XXX like had have this right you $XX year. million the than more for year or year I the due be with had that spent the to Act, going the last CARES then that is and to this pensions -- only million deferral? might I just lastly, ballpark, bigger Okay. like in Is that

Matti Masanovich

XXXX, advantage normal so our We into payments we did Act pension CARES made not of take XXXX. deferral in the

is run half in up normal million $XXX pensions half cash, coming via on being sheet. other balance of approximately of borne rate the our that EBITDA the So, and

Bob Amenta

Okay.

or EBITDA, starting really a with reduction? -- So be million $XX it'd just $XX Okay.

Matti Masanovich

Right.

Bob Amenta

All right. That’s all I had. Thank you.

Operator

also Being no conference We you presentation. today. session question-and-answer attending want questions, for this and further concludes today's concludes for call to our thank the

Have day. great disconnect. now may You a

Tenneco (TEN) 24 Feb 212020 Q4 Earnings call transcript