Revenue during the quarter grew 3.51 percent to $2,096 million from $2,025 million in the previous year period. Gross margin for the quarter expanded 123 basis points over the previous year period to 16.94 percent. Total expenses were 92.75 percent of quarterly revenues, down from 94.22 percent for the same period last year. This has led to an improvement of 147 basis points in operating margin to 7.25 percent.

Operating income for the quarter was $152 million, compared with $117 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $212 million compared with $200 million in the prior year period. At the same time, adjusted EBITDA margin improved 24 basis points in the quarter to 10.11 percent from 9.88 percent in the last year period.

"We delivered another record quarter, driven by the strength of our light vehicle business globally where we have an outstanding platform position across a broad base of customers. Strong volumes on key platforms and the launch of new light vehicle programs fueled our top-line growth. While light vehicle revenue nearly doubled industry growth, we saw a sharp decline in off-highway revenue as a result of weaker than expected off-highway market conditions in North America,” said Gregg Sherrill, chairman and chief executive officer, Tenneco. “We also delivered record high earnings and did an excellent job converting earnings to cash, which contributed to a very strong third quarter cash performance.”

For the fourth-quarter, Tenneco expects revenue to grow at 3 percent. Tenneco expects revenue to grow at 3 percent for the fiscal year 2016.

The company has spent $78 million cash to meet investing activities during the nine month period as against cash outgo of $75 million in the last year period.

The company has spent $51 million cash to carry out financing activities during the nine month period as against cash outgo of $36 million in the last year period.

Cash and cash equivalents stood at $324 million as on Sep. 30, 2016, up 47.27 percent or $104 million from $220 million on Sep. 30, 2015.

Working capital increases marginally
Tenneco Inc has recorded an increase in the working capital over the last year. It stood at $732 million as at Sep. 30, 2016, up 1.53 percent or $11 million from $721 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, down from 1.39 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 22 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 20 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went up to 75 days for the quarter from 74 for the same period last year.