Allison Transmission Holdings Inc.

Allison Transmission Holdings Inc., the largest global provider of commercial-duty fully automatic transmissions, reported higher net income in its fourth quarter, based on various adjustments as sales fell 2% year-over-year.

Net Income for the quarter ended Dec. 31 was $61 million, or 36 cents per diluted share, compared with $13 million, or 8 cents, for the same period in 2015.

“Allison’s fourth-quarter 2016 results exceeded the full-year guidance ranges we provided to the market on Oct. 24, principally due to stronger than anticipated demand conditions in North America off-highway service parts and global on-highway products,” Lawrence Dewey, Allison’s chairman and CEO, said in a statement.

The increase in net income principally was driven by a 2015 trade name impairment charge, adjustments for its interest rate derivatives and favorable product warranty adjustments, Indianapolis-based Allison said.

Net sales of $469 million in the fourth quarter of 2016 compared with $478 million in the same period in 2015. The decrease stemmed in large part from lower demand in the North America on-highway and global off-highway end markets partially offset by higher demand in the Outside North America On-Highway, Defense and Service Parts, Support Equipment & Other end markets.

North America on-highway end market net sales fell 14% to $217 million from the same period in 2015 amid lower demand for its rugged-duty and highway models, Allison said.

Outside of North America, on-highway end-market net sales were up 28% to $83 million from the same period in 2015, principally driven by higher demand in Europe, Japan and China, Indianapolis-based Allison said.

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