Dow Jones Newswirez | Tenneco Inc. swung to a first-quarter profit, as a rebound in the auto industry helped the parts maker post surging sales and improved margins and top analyst expectations.

Tenneco, which makes shock absorbers, suspensions and manifolds, reported a profit of $7 million, or 11 cents a share, compared with a year-earlier loss of $49 million, or $1.05 a share. The latest period had 14 cents in charges. Net sales were up 36percent to $1.32 billion.

Wall Street projected a profit of 15 cents on sales of $1.31 billion.

Gross margin grew to 18.5 percent from 14.5 percent.

The industry’s outlook has improved in recent months on expectations
sales will continue to improve in North America, as well as expansion
into in Asia and possible stabilization in Europe. Ratings agencies
have become increasingly more optimistic about Tenneco, in part due to
expected launches of commercial vehicle programs later this year, as
well as benefits from cost cutting.

Tenneco’s stock closed at $24.67 Wednesday and was inactive in premarket trading.