1. 500 North Field Drive
TENNECO AUTOMOTIVE INC.
THE POWER OF
Lake Forest, Illinois 60045
tenneco-automotive.com
NYSE:TEN
TEN
2 0 0 3 A N N U A L R E P O RT
Corporate Profile Mission Values
TENNECO AUTOMOTIVE INC.
2 0 0 3 A N N U A L R E P O RT
Teamwork
Tenneco Automotive is Tenneco Automotive’s Seamless collaboration
one of the world’s largest mission is to delight our Integrity
designers, manufacturers customers as the number- Being honest, fair and never
and marketers of emission one technology-driven, compromising our ethics
control and ride control global manufacturer Trust
products and systems for and marketer of value- Relying on and having faith in
one another
the automotive original differentiated ride control,
equipment market and emission control and Passion and a Sense of Urgency
A consuming desire to win now
aftermarket. The company elastomer products and
Balance
became an independent systems. We will strengthen Promoting a balanced perspective in
corporation in 1999, our leading position everything we do
THE POWER OF TEN
allowing singular focus through a shared-value Accountability
on strategies to maximize culture of employee Accepting responsibility for our actions
global results. involvement, where an Continuous Improvement
intense focus on Relentless focus on achieving more
with less
Tenneco Automotive continued improvement
markets its products princi- ED
delivers shareholder value Execution and Discipline
pally under the Monroe®, in everything we do.
Walker®, Gillet®, and
Clevite® Elastomer brand
names. Leading manufac- Contents
turers worldwide use our
Gatefold Tenneco at a Glance
products in their vehicles,
1 Financial Highlights
attracted principally by our
2 Chairman’s Letter
groundbreaking advanced
5 Operations Review
technologies. We are one
6 North America
of the top suppliers to the
10 Europe
automotive aftermarket,
offering exceptionally 13 Australia and
South America
strong brand recognition
14 Asia
among consumers and
16 Board of Directors
trade personnel. and Officers
17 10K
Tenneco Automotive
Back Investor Information
employs approximately
19,200 people worldwide.

2. TENNECO
AUTOMOTIVE
Original Equipment
OPERATIONS 2003 SALES MARKETS SERVED PRODUCTS BRANDS COMPETITORS KEY ADVANTAGES TOP FIVE CUSTOMERS TOP FIVE PLATFORMS 2003 MARKET OPPORTUNITIES
GM Envoy/Bravada/Trailblazer
Passenger cars Complete exhaust systems ArvinMeritor General Motors Additional content due
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Emission and Ride Control
Emission Control $2,037 million
GM Silverado/Suburban/
Light trucks Fabricated manifolds Faurecia Ford to emission regulations
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Leading technologies
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Investor Information Investor Inquiries Dividends
Yukon XL/Escalade/Tahoe
Commercial vehicles Manifold-converter modules Visteon Volkswagen Diesel aftertreatment
I I I I I
I Experienced team
Securities analysts, portfolio managers The company expects that for the
VW Bora/Golf/Leon/Jetta
Industrial applications Catalytic converters Delphi DaimlerChrysler Customized sound attenuation
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I Product/process quality
GM Opel Corsa/Chevrolet Corsa
Motorbikes Mufflers and resonators Eberspächer PSA Peugeot/Citroen Demand for diesel/
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I Global program
and representatives of financial insti- foreseeable future it will follow a
Corporate Headquarters
Dodge Ram Pickup
Diesel particulate filter systems hybrid/fuel cell
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I
management
tutions seeking information about the policy of retaining earnings in order
Tenneco Automotive Inc.
NOx abatement systems Emerging markets
I Japanese alliances
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company should contact the Investor to finance the continued development
500 North Field Drive
Exhaust heat exchangers Commercial vehicle segment
I I
I Joint ventures in China,
Relations department: 847.482.5042. of its business. Additional information
Exhaust isolators & hanging systems
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India, Thailand, and U.K. Lake Forest, Illinois 60045
I Customer relationships
on the company’s dividend policy and
847.482.5000
Ride Control GM Silverado/Suburban/
$800 million Passenger cars Shocks & struts ArvinMeritor Ford Vehicle stability/
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I Broad product range
restrictions on the payment of divi-
Stockholder Inquiries
Yukon XL/Escalade/Tahoe
Light trucks Suspension bushings Delphi General Motors safety requirements
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I Full service supplier
For stockholder services such as ex- dends can be found in Management’s
Web Site
DaimlerChrysler Town&Country/
Commercial vehicles Coil, air & leaf springs Tokico Volkswagen Modular assembly
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I Just In Time (JIT)
change of certificates, issuance of Discussion and Analysis in the Annual
Voyager/Caravan
Golf carts Torque rods ZF Sachs DaimlerChrysler New technologies
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assembly www.tenneco-automotive.com
VW Golf/Toledo
Off-road recreational Engine/body mounts Kayaba Nissan Adjacent markets
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certificates, lost certificates, change of Report on Form 10-K for the year
DaimlerChrysler Sebring/Stratus
Rail cars Suspension modules/systems Electronic technologies
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address, change in registered owner- ended December 31, 2003.
Corporate Information
Ford F-Series Super-Duty
Control arms/bars/links I
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ship or share balance, write, call or
Individuals interested in receiving the
e-mail the company’s transfer agent: Annual Meeting
company’s latest quarterly earnings
Aftermarket The Annual Meeting of Stockholders
press release or other company
Wachovia Bank, N.A. will be held at 10:00 a.m. Central Time
literature should write the Investor
OPERATIONS 2003 SALES MARKETS SERVED PRODUCTS BRANDS COMPETITORS KEY ADVANTAGES TOP FIVE CUSTOMERS LEADING PRODUCTS MARKET OPPORTUNITIES
Equity Services Group on Tuesday, May 11, 2004, at Tenneco
Relations Department at the corporate
1525 West W.T. Harris Blvd., 3C3 Automotive’s headquarters, 500 North
headquarters address or call
Quiet-Flow3® Mufflers/
Emission and Ride Control
Emission Control $350 million Passenger cars Manifolds ArvinMeritor NAPA Growing number of
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Charlotte, NC 28288-1153 Field Drive, Lake Forest, Illinois.
847.482.5042.
Brand dominance Assemblies
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Light trucks Mufflers OE Service Automotive Distribution vehicles on the road
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Dynomax® Ultra-Flo Stainless/ 866.839.3259 Toll Free
I Relationships with
Commercial vehicles Pipes Bosal International (ADI) OE Service
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all major wholesale Welded Mufflers/Systems
Performance vehicles Tubing Faurecia TEMOT Autoteile New technologies
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704.427.2602
Information about Tenneco
distributors/retailers DNX™ performance
Mounting components Goerlich’s Exhaust Advance Auto Parts Emission regulations
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Automotive is also available on the
I Global presence exhaust systems
Catalytic converters Systems Independent Motor Performance product demand
I I I
www.wachovia.com/shareholder-
company’s web site.†
I Leading market shares SoundFX™ mufflers
Performance mufflers Trade Factors Association I
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services
I Product innovation Clean Air™ catalytic converters
(IFA) I
I Product quality
Click on “Access Accounts”
Stock Listing
Reflex® shocks & struts
Ride Control $579 million Passenger cars Shocks ArvinMeritor NAPA Growing number of
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I Extensive product and
Click on “FirstLink Equity”
Tenneco Automotive’s common stock
Sensa-Trac® shocks & struts
Light trucks Struts OE Service TEMOT Autoteile vehicles on the road
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vehicle coverage
Rancho® shocks, struts and
Commercial vehicles Cartridges ZF Sachs Advance Auto Parts OE Service
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is listed under the ticker symbol TEN.
I Targeted marketing
suspension lift kits
Trailers Mounting kits Kayaba O’Reilly Auto Parts New technologies
I I I I I
programs
Gas-Magnum® shocks
Performance shocks ADI Unperformed maintenance
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I Introduction of
TEN is traded primarily on the
DNX™ performance shocks
Torque rods Premium mix expansion
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service parts
New York Stock Exchange and also
and struts
Suspension bushings Broader product coverage
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Monro-Matic Plus® shocks
Engine mounts Heavy-duty truck penetration
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on the following exchanges: Chicago,
DuPont™ car care line Safety/installer education
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Pacific and London. Stock Price Data
Testing/diagnostic equipment
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2004 2003 2002
As of February 23, 2004, there were Sales Prices Sales Prices Sales Prices
approximately 48,841 holders of record
2003 2002 2003 Sales 2003 EBIT* Broad Product Line Mix Exhaust Management Suspension Management People: Approx. 19,200
High Low High Low High Low
of the company’s common stock, par
Emission Control Ride Control Elastomer Manufacturing &
Revenues (millions) $3,766 $3,459
value $0.01 per share.
Just-In-Time Facilities: 72 First Quarter* $14.88 $6.73 $ 4.32 $ 2.01 $ 4.10 $ 1.90
Emission Control/
Ride Control Balance† 63/37 65/35 Engineering Centers: 14 Second Quarter $ 4.65 $ 2.25 $ 6.75 $ 3.82
Countries Served: 130
Original Equipment/ Third Quarter $ 7.45 $ 3.61 $ 8.32 $ 3.50
Aftermarket Balance† 75/25 74/26
Fourth Quarter $ 7.32 $ 4.66 $ 5.97 $ 3.28
†percentage of sales
* EBIT is income before interest
North America 50% North America 74% Cold End 58% Shocks & Springs 61% Other Suspension
Components 53%
expense, taxes, and minority
Europe 38% Europe 8% Hot End 42% Struts 32% * 2004 First Quarter through March 4, 2004
†
interest. The information on our web site is not part
Rest of World 12% Rest of World 18% Modules & Systems 7% Bushings 47% of this annual report

3. 2003 2002 2001 2000
Financial Highlights (dollars in millions except share and per share data)
Sales $ 3,766 $ 3,459 $ 3,364 $ 3,528
Earnings before interest and taxes $ 176 $ 169 $ 92 $ 120
Depreciation and amortization $ 163 $ 144 $ 153 $ 151
EBITDA* $ 339 $ 313 $ 245 $ 271
Net income (loss) before change
in accounting principle $ 27 $ 31 $ (130) $ (42)
Earnings (loss) per share before
change in accounting principle $ 0.65 $ 0.74 $ (3.43) $ (1.20)
Capital expenditures $ 130 $ 138 $ 127 $ 146
Average diluted shares outstanding 41,767,959 41,667,815 38,001,248 34,906,825
Total debt $ 1,430 $ 1,445 $ 1,515 $ 1,527
Cash and cash equivalents $ 145 $ 54 $ 53 $ 35
Debt, net of cash balances $ 1,285 $ 1,391 $ 1,462 $ 1,492
*EBITDA represents income from continuing operations before cumulative effect of change in accounting
principle, interest expense, income taxes, minority interest and depreciation and amortization. EBITDA is not
a calculation based upon generally accepted accounting principles. The amounts included in the EBITDA
calculation, however, are derived from amounts included in the historical statements of income data. In
addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator
of our performance, or as an alternative to operating cash flows as a measure of liquidity. We have reported
EBITDA because we believe EBITDA is a measure commonly reported and widely used by investors and other
interested parties as an indicator of a company’s performance. We believe EBITDA assists investors in compar-
ing a company’s performance on a consistent basis without regard to depreciation and amortization, which
can vary significantly depending upon many factors. However, the EBITDA measure presented in this document
may not always be comparable to similarly titled measures reported by other companies due to differences in
the components of the calculation.
Cash Flow † SGA&E Expense†† Working Capital†
$ in millions Percentage of sales Percentage of sales
$315
17.0%
$281 15.6%
$253 14.0%
12.5%
12.1%
$209 11.4%
10.1%
$169
6.0%
3.6%
2.3%
1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003
†See 2003 Form 10K Item 6 for reconciliation to GAAP reporting measure.
††Selling, general and administrative expense plus engineering, research and development expense.
1

4. Mark P. Frissora
Chairman and
Chief Executive Officer
For Tenneco Automotive, Adhering to this
To Our Shareholders
2003 was the most strategic focus, in 2003
successful year since we achieved:
becoming a stand-alone A new high in revenues of $3.8
I
billion, up 9 percent over 2002.
company. Revenue,
The most new business booked
I
profitability, new business in a single year.
and debt reduction were Our highest revenue per employee
I
all at record performance at $196,771.
levels. This progress reflects A new low of 11.4 percent of sales
I
our continued focus on a for overhead expenses.
Our highest operating income
core strategy of generating I
of $176 million, a 4 percent year-over-
cash to pay down debt year increase.
by strengthening business A two-phased debt refinancing that
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relationships, controlling improved flexibility and liquidity.
costs, lowering working Our lowest level of debt net of cash
I
capital and improving balances at $1.285 billion.
gross margins. More than $154 million in cash flow
I
before financing activities due to a
16 percent improvement in cash flow
from working capital.
The highest increase in enterprise
I
value —the market value of our debt
and equity—at 34 percent.
2

5. As we pursue the strategies that unit to concentrate on heavy duty and New Aftermarket Products
We have a new aftermarket strategy
generated this success, we are focusing other commercial vehicles worldwide,
to introduce service parts to our
on investments in proprietary technolo- which should allow us to capture an
core offering of shocks, mufflers
gies for growth markets, increasing expanded share of this growing
and associated “hard parts.” Service
the variability of our cost structure segment.
parts are parts on a vehicle that are
and improving our financial flexibility.
serviced regularly—like windshield
Number One in China
Investments in Growth wipers, filters and brakes.
Our early investments in China and
the forging of effective joint ventures
Higher Global Emission Standards
In December, we signed an exclusive
have made us the country’s leading
Require Advanced Technology
licensing agreement with DuPont
OE emission control supplier. China’s
Environmental regulators are tightening
to market a line of premium car care
economy leads the world in growth
emission standards around the world,
products in North America. The line,
as passenger car production rose
increasing the value of emission control
including car washes and waxes,
55 percent in 2003 over the previous
content per vehicle. We have invested
capitalizes on DuPont’s valuable Teflon®
year. Production is expected to increase
in technologies that meet more
brand name. Our investment in this
about 10 percent annually through the
stringent requirements such as our
high-margin product line is minimal
decade, which would make China the
diesel particulate filter, DeNOx converter
as we outsource manufacturing, while
world’s second largest vehicle market in
and lightweight fabricated manifolds.
leveraging our distribution channels.
2010. Our revenues in China have
These cutting-edge products, in demand
We expect to introduce additional
increased at a compounded annual
by PSA, Audi, Mercedes Benz and other
service parts in the next year in both
growth rate of 60 percent since 1998.
automakers, command higher margins.
North America and Europe.
Targeting Japanese OEMs
Commercial Truck Recovery Suits
Variable Cost Structure
Japanese original equipment manufac-
Established Capability
turers (OEMs) have sharply increased We are implementing a number
The estimated 25 percent increase in
their share of the North American auto- of measures to increase the variability
commercial vehicle production projected
motive market. Through alliances with of our cost structure, including
for 2004 would mark a turnaround,
Futaba and Tokico, leading Japanese outsourcing non-core production
driven by improvement in general
emission control and ride control processes and select services to
economic conditions and higher freight
suppliers, we have strengthened our manufacturers or regions of the world
volumes. Progressively tighter emission
relationships with these producers. We that can render them most efficiently.
regulations affecting heavy-duty trucks
are the only North American supplier in These actions will give us the flexibility
will take effect throughout the decade,
our business segments to work with all to respond faster and more effectively
increasing the size of the global
of the Japanese Big Three —Toyota, to changes in the marketplace.
commercial truck exhaust market for
Honda and Nissan — and have raised
the products we offer to an estimated
the share of our North America OEM
$2.3 billion in 2010 from $173 million
revenues from Japanese automakers
in 2003. Our technology investments,
to 18 percent at 2003 year-end from
developed for light trucks, are transfer-
14 percent at the close of 2002.
able to the medium- and heavy-truck
market. We have formed a new business
3

6. We are expanding our use of Six Sigma by expanding more of our operations The continued success of Tenneco
and employing Lean manufacturing and to Eastern Europe. We now operate Automotive ultimately will be driven
other initiatives to improve our produc- six facilities in Poland, Russia and the by uncompromising integrity —in the
tion capability, streamline operations and Czech Republic and these plants way we deal with our customers,
reduce costs. were responsible for most of the 2003 manage our employees and report
launches in Europe. to our stakeholders —and a corporate
Six Sigma generated $27 million in
I
culture committed to world-class
cost savings in 2003 by reducing
Improved Financial performance through execution
defects and waste. An additional
and discipline.
Flexibility
$20 million in savings is expected
this year. Last year, we executed a very successful
At Tenneco Automotive, we believe
two-phased debt refinancing transaction
Our Lean manufacturing initiatives,
I
our people are our most valuable asset.
that improved our flexibility in the appli-
modeled on the Toyota Production
They design our products, manufacture
cation of our cash flow and created
System, are reducing costs, inventories
our products and sell our products.
greater liquidity. The new agreements
and lead times, while improving
Recognizing this, we invest in a culture
extended nearly all debt maturities out
on-time delivery.
that provides opportunities for employee
to 2009 and beyond.
Our Project Genesis restructuring
I
development, which results in greater
program has improved capacity job satisfaction as exemplified by our
When Tenneco Automotive became
utilization by closing underutilized salaried-employee turnover rate, which
a stand-alone company in 1999, our
manufacturing facilities and improving we believe is well below the industry
debt totaled approximately $1.7 billion.
workflow at remaining plants. Genesis average. This distinguishes Tenneco
We reduced this by nearly $300 million
yielded $17 million in incremental Automotive and reflects a unique advan-
and are further improving our capital
savings in 2003 in addition to the tage, both in serving our customers and
structure by debt reduction through
$12 million saved in 2002. Now that in allowing us to retain and recruit the
higher earnings and cash flow, as well
the program is complete, we will best and brightest employees.
as opportunistic debt management
benefit from the full $30 million
in an environment of low interest rates
of cost reductions that have been In the end, our overall objective is
and strong capital markets.
achieved over the past two years. clear and unchanging. We are deter-
mined to build on the fundamentals
Additionally, we are among our
I
Looking Ahead
that enable our business to succeed
industry’s best-in-class in plant safety We will continue to strive toward
and will continue to invest in opportuni-
performance, which further enhances improved performance, focusing on
ties that strengthen our position in
our global manufacturing position. additional cost and capacity reductions,
key growth areas.
Safety performance is based on a total greater flexibility and investments in tech-
case rate measure, which is calculated nology that fuel new business growth.
by the number of injuries per 100
employees. Our total case rate was Our book of new business is at a peak
3.5 last year, which is 65 percent with revenues from OEMs in 2004
lower than the industry average. estimated to climb 3 percent over
2003. In 2005, we expect our OEM
Mark P. Frissora
Go East book of business to increase 11 percent
Chairman and
In Europe, we are more closely aligning over 2003, with strong potential for Chief Executive Officer
with our customers and lowering costs additional growth. April 2004
4

7. TH E
PO W E R
TEN
OF
We are a global company, market-leading ride control costs and maximizing
operating from established and emission control financial flexibility. However,
markets in North America products, and our varied the diversity of our geo-
to areas of explosive growth customer base. graphic coverage, products,
such as China. markets, businesses and
From this foundation, we
customers requires strategies
These distinct markets grow revenues by investing
tailored to specific needs.
provide strength, as does in technologies for expand-
the balance between our ing markets, and reduce Diversity combined
original equipment and debt by increasing the with unity of purpose:
aftermarket businesses, variable structure of our the Power of TEN.
Computerized Electronic Shock
LiteningRod
Semi-Active Muffler
5

8. NORTH
AMERICA
2003’s hottest-selling vehicles incorporate our products, boosting our original
equipment revenues and offsetting declines in overall automotive production. We
are countering adversity in the aftermarket business by broadening our customer
base, extending our product lines and entering new product categories.
Our Results North American Tenneco North American
Vehicle Production 2003 OE Light Vehicle Sales
North American consumers maintained
a preference for SUVs, minivans and
light trucks over passenger cars in 2003.
Our significant presence on these
top-selling vehicle platforms was benefi-
cial as we generated revenues that
outpaced overall production rates. Our
original equipment (OE) revenues in
North America increased 1 percent last
year compared with a 3 percent decline Light Truck 78%
Light Truck 53%
Passenger Car 22%
Passenger Car 47%
in industry production. Sales of new
autos and light trucks, while about 1 Source: Automotive News
percent lower than 2002 levels at 16.8
million units, marked the fifth best year total North American OE revenue at vehicle. Our team executed a virtually
in the history of the industry. year-end 2003 from just 14 percent flawless launch —a performance that
one year earlier. Our products are on Toyota referred to as a benchmark in
Competition intensified for domestic strong-selling platforms and new delivering Lexus quality. Our high marks
vehicle manufacturers as Japan-based launches including Honda’s Accord, Pilot, for production processes and efficiency
automakers increased their market share Odyssey and Acura MDX; Nissan’s Titan, were underscored when we received
in North America. Our global alliances Frontier, Pathfinder, Armada, Xterra, Toyota’s Excellence Award for Lexus
with Tokico and Futaba, leading Japanese Infiniti, and Altima; and Toyota’s Sienna, Launch as well as an Excellence Award
ride control and emission control Sequoia and Lexus RX 330. for Value Improvement, reflecting our
suppliers, provided us with a competitive overall support to Toyota in 2003. We
advantage and helped to further expand The North American launch of the Lexus will continue to build our relationships
our business with Japanese original RX 330 was especially noteworthy in with the Japanese OEMs, pursuing more
equipment manufacturers. Revenue 2003. This was the first launch of a Lexus of their business in North America,
generated from these manufacturers vehicle outside of Japan. Tenneco is which represents a strong growth
increased to about 18 percent of our supplying the exhaust system on this opportunity for us.
We successfully
launched the
exhaust system
on Toyota’s Lexus
RX 330, the first
Lexus vehicle
to be sourced in
North America.
World Headquarters
Emission Control Manufacturing
Ride Control Manufacturing
Emission Control Engineering Center
6
Ride Control Engineering Center