Dow Jones Newswires | Tenneco Inc. swung to a fourth-quarter profit on steep prior-year charges as the auto parts maker also benefited from cost cutting and reported higher sales for the first time in nearly two years.

Lake Forest-based Tenneco, which makes shock absorbers, suspensions and manifolds, posted a profit of $17 million, or 32 cents a share, compared with a year-earlier loss of $298 million, or $6.40 a share. The latest quarter included a net 19 cents in gains.

U.S. auto suppliers are expected to see a modest recovery in 2010, as revenue is expected to improve in North America and Europe this year. Tenneco’s improved results, and its decision late last year to begin reversing wage cuts to salaried workers, indicated a brightening outlook for the company.  

Net sales improved 9.4 percent to $1.32 billion, or rose 5 percent excluding currency changes.

Analysts surveyed by Thomson Reuters expected earnings of 13 cents on sales of $1.32 billion.

Gross margin jumped to 17.4 percent from 12.6 percent, helped by restructuring efforts.

Tenneco said it expects global-original equipment revenues of about $4.4 billion in 2010 and $5.7 billion in 2011, up from the $3.6 billion it posted during 2009.

“Although we are just in the early stages of a global industry recovery and 2010 production forecasts for North America and Europe remain low relative to historical levels, Tenneco is well-positioned to deliver revenue and earnings growth this year as we launch new business, take advantage of volume increases and continue to benefit from permanent cost reductions and operational improvements,” said Chairman and Chief Executive Gregg Sherrill.

Shares closed Wednesday at $19.45 and were inactive premarket.