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Tenneco Inc. (TEN - Analyst Report) revealed that its board of directors has approved a share repurchase program in order to offset dilution from shares of restricted stock and stock options that were issued to employees under the company’s long-term compensation plan in 2013.

The board has authorized the repurchase of up to 550,000 shares of the company’s outstanding common stock over the next 12 months. The repurchase will be funded through operating cash flow.

In January last year, Tenneco’s board has approved a share repurchase program of 600,000 shares of the company’s outstanding common stock. The company has already completed the program by acquiring all the authorized number of shares for $18 million by the end of third quarter of 2012.

The leading manufacturer and supplier of emission control and ride control systems reported third quarter 2012 adjusted earnings per share of 85 cents, comfortably ahead of the Zacks Consensus Estimate of 75 cents and up 26.9% from 67 cents a year ago.

The company’s revenues for the quarter increased marginally to $1.78 billion from $1.77 billion in the year-ago quarter. However, it was lower than the Zacks Consensus Estimate of $1.83 billion.

The year-over-year increase in revenues was attributable to a rise in production of light vehicles in North America and China and higher commercial vehicle revenues. Excluding substrate sales and currency impact, revenues increased 6% to $1.46 billion. Revenues from original equipment (OE) commercial and specialty vehicles (representing 10% of the total revenue) escalated 8% year over year to $184.0 million.

Adjusted EBIT (earnings before interest, taxes and non-controlling interests) improved 14% to $113.0 million from $99.0 million in the year-ago quarter. The year-over-year improvement was driven by higher light vehicle production in North America and China, increase in commercial vehicle revenues and effective operational cost control measures.

Tenneco anticipates revenue growth from North America and China, owing to the strong industry production. In Europe, the company aims to reduce costs to counter the economic challenges in the continent. According to IHS Inc. (IHS - Snapshot Report), light vehicle production is expected to increase in most of the company’s markets except Europe. As a result, the company  a 25% increase in revenues for the full year 2012.

Tenneco currently retains a Zacks Rank #3 (Hold). A few stocks that are worth a look in the same industry where the company operates include Commercial Vehicle Group Inc. (CVGI - Snapshot Report) and Oshkosh Corporation (OSK - Snapshot Report). These companies carry a Zacks Rank #1 (Strong Buy).

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