Tenneco Plans to Cut Costs by $100 Million

Tenneco Inc. said it plans to slash costs by $100 million and possibly separate its automotive-parts and packaging businesses in a bid to revive its sinking shares. The Greenwich, Conn.-based maker of Hefty trash bags, Baggie food-storage bags and Monroe auto parts also said it plans to accelerate the split-off of its container-board business from the main packaging unit. An unspecified number of jobs will be cut from the company’s 50,000-member work force as part of the plan, Chairman Dana Mead said. The moves come as Tenneco posted a lower-than-expected 23% increase in second-quarter operating profit to $128 million, or 76 cents a diluted share, from $104 million, or 61 cents, a year ago. Revenue rose 5.8% to $2 billion. Analysts had expected Tenneco to earn 82 cents a share. Tenneco’s shares rose $1.81 to close at $36 on the NYSE.