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TENNECO REPORTS IMPROVED THIRD QUARTER AND NINE MONTH RESULTS

 TENNECO REPORTS IMPROVED THIRD QUARTER AND NINE MONTH RESULTS
 HOUSTON, Oct. 22 /PRNewswire/ -- Citing the continuing, positive impact of management programs, Tenneco Inc. (NYSE: TGT) today announced improved earnings for the third quarter and nine months of 1992. All six divisions reported increased operating income over the same periods of 1991.
 "The earnings we report today show that Tenneco is on track with its aggressive turnaround. This third consecutive quarter of dramatic improvement in a weak economy shows that our focus on results and consistent profitability is working," said Mike Walsh, Tenneco chairman and chief executive officer.
 For the third quarter, the company reported earnings per share of 28 cents compared with a loss of $5.69 per share in the same period a year ago. Last year's third quarter included a loss from continuing operations of $1.84 per share, after excluding a loss of $3.49 per share attributable to a restructuring charge. The 1991 quarter also included a loss from discontinued operations of 36 cents a share.
 Third quarter net income was $46 million compared with a loss from continuing operations of $222 million in 1991, excluding a $427 million after-tax restructuring charge.
 Third quarter revenues of $3.2 billion were up only slightly from last year. Operating income totaled $177 million compared with an operating loss of $33 million in the year ago period, after excluding the pre-tax restructuring charge of $504 million taken in last year's third quarter.
 "These results, in a weak economy, show the positive momentum that is possible when people focus relentlessly on producing results," Walsh said. All divisions reported improved operating income for the third quarter:
 -- Packaging Corporation of America (PCA) reported $49 million, up 113 percent over last year's $23 million.
 -- Albright & Wilson, with operating income of $15 million, was up significantly from last year's operating loss of $1 million, excluding a $79 million restructuring charge.
 -- J I Case showed a quarter-over-quarter positive swing of $100 million, excluding a 1991 third quarter restructuring charge.
 -- Tenneco Gas reported operating income of $58 million, more than triple the results in the third quarter last year.
 -- Tenneco Automotive, with operating income at $60 million, was up 22 percent from the same quarter last year.
 -- Newport News Shipbuilding operating income was $68 million, up 11 percent.
 The $100 million positive swing at Case came despite 10 percent lower sales and 22 percent lower production compared with the third quarter last year. Case cut operating expenses $32 million during the quarter, bringing the year-to-year expense reductions to $113 million.
 YEAR-TO-DATE RESULTS.
 Tenneco divisions showed a positive swing in operating income of almost a half billion dollars over the first three quarters of 1991, excluding $552 million in restructuring charges taken in the first nine months last year.
 Year-to-date operating income totaled $680 million compared with $222 million through three quarters last year, excluding restructuring charges. Nine-month revenues were flat at $9.8 billion.
 For the first nine months of 1992, net income was $257 million, or $1.71 per share, compared with a net loss of $706 million, or $5.87 per share in the same period of last year. The company reported year-to- date income from continuing operations of $186 million, or $1.21 per share, compared with a loss from continuing operations of $199 million, or $1.72 per share, excluding restructuring charges of $472 million, or $3.86 per share.
 DIVISIONAL ANALYSIS
 Natural Gas Pipelines.
 Tenneco Gas reported operating income of $58 million for the third quarter, up from $17 million in the 1991 quarter. Revenues totaled $526 million compared with $422 million in last year's third quarter.
 Year-to-date, operating income of $249 million was up $52 million, or 26 percent, from the same period last year. Revenues of $1.5 billion for the first nine months were essentially flat.
 Higher transportation volumes, revenues from the Kern River Pipeline and cost control efforts drove the third quarter income growth. The Kern River system is operating at capacity.
 Farm and Construction Equipment.
 J I Case reported a third quarter operating loss of $68 million compared with a loss of $169 million, excluding $413 million in restructuring charges taken in 1991. Revenues of $858 million were 12 percent lower than the $977 million recorded in the 1991 quarter.
 Year-to-date, Case improved its operating income by $257 million, despite weak markets and production cuts. The nine month operating loss totaled $134 million compared with a $391 million loss in 1991, excluding 1991 restructuring charges of $461 million. For the first three quarters, revenues of $2.9 billion were almost 10 percent lower than those recorded in the comparable period of 1991.
 Markets for farm and construction equipment continue to decline with industry farm equipment sales down 15 percent through September and industry construction equipment sales lower by 14 percent.
 These conditions make further production cuts necessary in order to keep inventories in line with demand. Case will cut production an additional 4 percent which will bring annual production 24 percent lower compared with last year. These cuts will put added pressure on Case's financial results and place it in a loss position for the fourth quarter and the full year.
 Automotive Parts.
 Tenneco Automotive continued its strong performance, generating third quarter operating income of $60 million, a 22 percent increase over the $49 million recorded in the 1991 period. Revenues for the quarter were $467 million compared with $441 million last year.
 Operating income for the first three quarters reached $176 million, an increase of 12 percent compared with $157 million in the same period last year. Year-to-date revenues totaled $1.4 billion compared with $1.3 billion in the same period of 1991.
 Increased North American original equipment sales -- particularly for Walker exhaust products -- were the main drivers in the improved year-to-date results. Cost controls also added to the improvement.
 Shipbuilding
 Newport News Shipbuilding remained a consistent performer with $68 million in third quarter operating income compared with $61 million. Revenues of $551 million compared with $562 million in the 1991 period.
 Through the first three quarters, operating income totaled $188 million, up 7 percent, compared with $176 million in the comparable period last year. Revenues for the nine months were $1.7 billion, essentially flat.
 The backlog at the end of the quarter stood at $5 billion and included seven submarines, two aircraft carriers and the refueling and overhaul of the aircraft carrier Enterprise.
 During the quarter, the shipyard won contracts with the Navy to repair five submarines and bid on conversion design contracts for Navy Sea Lift vessels. The shipyard won seven commercial ship repair contracts during the quarter, bringing the total orders for the year to 20.
 Packaging.
 PCA saw third quarter operating income increase 113 percent -- $49 million compared with $23 million in the same period last year. Revenues of $532 million compared with $504 million in the 1991 quarter.
 Through nine months, PCA more than doubled its operating income with earnings of $157 million compared to $76 million recorded in the 1991 quarter. Revenues totaled $1.6 billion compared with $1.4 billion in the 1991 period.
 Higher mill productivity, operating rates near 100 percent and growing containerboard markets drove the improvements. Increased box shipments and the continuing strength of specialty packaging products, along with the benefits from cost controls and quality programs, also contributed to the improved performance.
 Chemicals.
 Albright & Wilson (A&W) recorded $15 million of operating income for the third quarter compared with an operating loss of $1 million last year which excludes a $79 million restructuring charge. Revenues were $240 million compared with $212 million in the 1991 quarter. Year-to- date, A&W had operating income totaling $49 million, up from $13 million, excluding the restructuring charge. Revenues for the first three quarters were $724 million, compared with $683 million.
 The dramatic turnaround at A&W continued despite lingering weakness in European markets. Improved volumes and management actions to control costs and improve quality contributed to the increased earnings.
 STOCK EMPLOYEE COMPENSATION TRUST
 Tenneco also announced that it will issue 12 million shares of common stock to a trust fund to pre-fund a portion of the company's benefit obligations during the next five years. The shares will be transferred from the trust into various employee and retirement benefit programs on an as-needed basis. The plan will reduce the company's cash obligations to fund these programs.
 Tenneco Inc. is a Houston-based diversified industrial corporation with major business interests in natural gas pipelines (Tenneco Gas), farm and construction equipment (J I Case), automotive parts (Tenneco Automotive), shipbuilding (Newport News Shipbuilding), packaging (Packaging Corporation of America) and chemicals (Albright & Wilson).
 Period ended Three months
 Sept. 30, 1992 1991
 Net sales and operating
 revenues $ 3,180,000,000(A) $ 3,118,000,000
 Operating income (loss) before
 restructuring charge $ 177,000,000 $ (33,000,000)
 Restructuring charge -- (504,000,000)
 Income (loss) before interest
 and taxes(A) $ 177,000,000 $ (537,000,000)
 Income (loss) from continuing
 operations $ 46,000,000 $ (649,000,000)(B)
 Income (loss) from discontinued
 operations -- (44,000,000)
 Net income (loss) $ 46,000,000 $ (693,000,000)
 Average common shares
 outstanding 144,500,000 122,400,000
 Earnings (loss) per average share:
 Continuing operations $ 0.28 $ (5.33)(B)
 Discontinued operations -- (0.36)
 Total $ 0.28 $ (5.69)
 Periods ended Nine months
 Sept. 30, 1992 1991
 Net sales and operating
 revenues $ 9,825,000,000(A) $ 9,832,000,000
 Operating income (loss) before
 restructuring charge $ 680,000,000 $ 222,000,000
 Restructuring charge -- (552,000,000)
 Income (loss) before interest
 and taxes $ 680,000,000(A) $ (330,000,000)
 Income (loss) from continuing
 operations $ 186,000,000 $ (671,000,000)(B)
 Income (loss) from discontinued
 operations 71,000,000 (35,000,000)
 Net income (loss) $ 257,000,000 $ (706,000,000)
 Avg. common shares outstanding 143,000,000 122,300,000
 Earnings (loss) per average share:
 Continuing operations $ 1.21 $ (5.58)(B)
 Discontinued operations 0.50 (0.29)
 Total $ 1.71 $ (5.87)
 (A) From continuing operations
 (B) Includes after-tax restructuring charge of $427 million or $3.49 per share in the third quarter of 1991, and $472 million or $3.86 per share year-to-date 1991.
 -0- 01/22/92
 /CONTACT: Christine LeLaurin, public relations of Tenneco Inc., 713-757-2761 (office), or 713-270-0880 (home)/
 (TGT) CO: Tenneco, Inc. ST: Texas IN: OIL SU: ERN


SH -- NY034 -- 3437 10/22/92 10:32 EDT
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