Allison Transmission Sees 4Q Income Grow 70%
Allison Transmission Holdings Inc. kicked its fourth quarter into overdrive with a 70% increase in profit over the same quarter in 2012.
The Indianapolis Business Journal reported that the Indianapolis-based manufacturer of transmissions and motorhome supplier, drove in $491 million in revenue for the quarter, a 1% increase from $487 million from same quarter in 2012. Profit for the quarter reached $78 million, compared to $46 million for the same period in 2012. Earnings per share for the quarter were 23 cents, topping consensus analyst estimates of 18 cents.
“Allison continued to demonstrate strong operating margins and cash flow during the fourth quarter by executing initiatives to align costs and programs across our business with end markets demand conditions, while investing in growth opportunities,” said CEO Lawrence E. Dewey in prepared comments.
The strong fourth-quarter helped end a lackluster year with some momentum. Revenue for 2013 hit $1.93 billion, compared with $2.14 billion in 2012. Profit for 2013 limped in at $165.4 million, compared with $514.2 million in 2012.
Allison said that it expects 2014 revenue to increase 3% to 6%, but did not provide specific guidance for its first-quarter results.
Sales picked up significantly (12%) in Allison’s North American On-Highway division, with higher demand for rugged-duty vehicles and bus models. Another area of strength was its segment for service parts and support equipment which increased 37%.