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To: Ellen who wrote (71353)	11/14/1999 1:58:00 PM
From: kendall harmon	Respond to of 120523

TEN--profile from today's chicago sun times << Tenneco Automotive Inc., the world's largest maker of shock absorbers and exhaust systems for cars and trucks, is counting on technology to set it apart from rivals as it embarks on a future as an independently traded company. Shares of the Lake Forest-based maker of Monroe shock absorbers and Walker mufflers began trading separately this month as Tenneco Inc. ended a dismantling that began in 1992 to pare down from eight businesses. The debut comes as auto-parts makers' shares have fallen on concern that vehicle sales could slow. Tenneco Automotive had 1998 sales of $3.2 billion. Tenneco Inc. spun off to shareholders its packaging division, which makes Hefty bags and had $2.8 billion in sales last year, as Pactiv Corp. "They're becoming like Intel in the way they're upgrading and replacing their products," said Eric Goldstein, an analyst with Bear Stearns & Co. The company plans to begin selling a muffler soon with a valve that opens when a vehicle speeds up and closes when the vehicle slows, boosting engine horsepower as much as 15 percent. Other products in the works include a muffler without welds that will look better to car enthusiasts and new Reflex shock absorbers that use hydraulic-valve technology to provide a smoother ride than its Monroe SensaTrac shocks. The automotive company's "product lines are unique, and we're increasing our content on vehicles with high value-added technology," Tenneco Automotive Chief Executive and President Mark Frissora said in an interview. Tenneco Automotive also will benefit from new environmental rules that will tighten emissions standards in the United States and Europe, Frissora said. The company makes a new type of catalytic converter that traps more pollution-causing gases and particles from vehicle exhaust, as well as heat exchangers that will be needed in European vehicles, he said. Those changes will help boost the average dollar amount of its parts in each vehicle it supplies to $475 by 2004 from $225 last year, Frissora said. The company has facilities in 25 countries and sells its products in more than 100 countries. Still, Tenneco Automotive's share debut comes at a tough time for many auto-parts stocks. The Standard & Poor's SuperCap Auto Parts and Equipment Index fell 22 percent through Thursday since reaching its 52-week high of 149.19 on May 11, while the broader Standard & Poor's 500 stock index gained 23 percent. Tenneco Inc. shares have declined 2.3 percent since Nov. 5, after the split. Shareholders got one-fifth of a share of Tenneco Automotive and one Pactiv share for each Tenneco share. Analysts welcomed the move for both businesses, because it lets them focus on different industries. "The packaging company is going to be a very good one in the future with a potent capital structure and an intensified management team," said Deutsche Bank Alex. Brown Inc. analyst Daniel Khoshaba.>> suntimes.com