Tenneco to reduce second-quarter salary costs by 25%, including furloughs and pay cuts

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Auto parts maker Tenneco Inc. announced Friday a series of actions its taking to combat the negative effects of the COVID-19 pandemic, which current estimates suggest the second-quarter will be the most severely impacted. For the second quarter, the company said it will cut salary cuts by at least 25% through unpaid furloughs and reduced pay and available temporary support programs. Tenneco said its executive leadership will take a 50% pay cut during the quarter, with the CEO not receiving any salary. After the second quarter, overall salary costs will be lowered by at least 10% from the original levels for the rest of the year. In addition, Tenneco said it will cut capital expenditures for 2020 to less than $400 million from previous guidance of $610 million to $650 million, and is withdrawing the financial guidance it provided in February. For liquidity, the company said it had cash balances of about $700 million, and has drawn about $700 million from its $1.5 billion revolving credit facility. The stock, which was still inactive in premarket trading, had plunged 77.8% over the past three months, while the S&P 500 has dropped 21.9%.