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Allison Transmission Posts 1Q Income Growth

April 24, 2012 by · Leave a Comment 

Allison Transmission Holdings Inc. posted a higher quarterly profit, helped by strong demand for on-highway commercial vehicle products worldwide.

The company, which went public in March, makes automatic transmissions for trucks, motorhomes, buses and military vehicles.

Net income for the quarter rose to $58 million from $36.9 million last year. Net sales rose 16% to $601.9 million.

Sales at the on-highway segment in North America increased 34% to $219 million, while it rose 16% to $66 million outside the region.

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Allison Shares Up Slightly in 1st Day of Trading

March 16, 2012 by · Leave a Comment 

Allison Transmission Holdings Inc. shares rose in their trading debut Thursday (March 15) after the Indianapolis-based manufacturer raised more than sought in its initial public offering (IPO).

After falling in early trading, shares rose 1.7%, to close at $23.40 each, giving Allison a market value of about $4.2 billion. The Indianapolis-based company manufactures transmissions for a variety of heavy-duty vehicles, including motorhomes.

The company on Wednesday raised $600 million in the IPO, selling 26.1 million shares for $23 each after offering 21.7 million shares at $22 to $24.

The IPO price valued Allison’s stock at $4.2 billion, or almost triple the equity value when Carlyle Group LP and Onex Corp. bought the business from the predecessor of General Motors Co. in 2007. It also makes Allison twice as expensive as Delphi Automotive Plc and Remy International Inc., two other former units of the automaker, according to data compiled by Bloomberg.

Including net debt, Allison’s IPO price valued the company at $7.2 billion, or about 11 times last year’s earnings before interest, taxes, depreciation and amortization.

The shares are trading on the New York Stock Exchange under the symbol ALSN. The company has benefited from a surge in truck sales, reporting net income of $103 million last year after returning to profit in 2010. Allison got 34% of its 2011 revenue, or $727 million, from parts for on-highway vehicles in North America, Allison’s IPO filing showed.

So far, Allison’s market share among interstate hauling trucks has remained small because manual transmissions get better mileage. Frequent starts and stops of city driving make automatic transmissions popular for garbage and delivery trucks and other work vehicles.

Allison sees growth potential for short haul tractor-trailers used on highways and in cities, CEO Lawrence Dewey said in an interview. A new transmission is being tested with more than 55 fleets, including Wal-Mart Stores Inc., FedEx Corp., and United Parcel Service Inc., he said.

The transmission should be available next year, he said. Allison also has had interest from fleet operators in Europe and Asia, where penetration of automatic transmissions is lower than in North America.

“We think the value proposition will be very attractive,” Dewey said. “Certainly that’s been the feedback.”

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Allison Transmission Debuts Beefier 1350 Model

January 25, 2012 by · Leave a Comment 

Allison Transmission Inc. announced the introduction of the new 1350 model. According to a news release, the new product offering will provide an option within the Indianapolis-based company’s 1000 Series models for towing capacity of up to 30,000 pounds.

The 1350 will be offered across several platforms, including motorhomes.

Previously, the maximum Gross Combination Weight (GCW) approved in the Allison 1000 Series was 26,000 pounds. This new 1350 model increases that limit to 30,000 pounds and provides end users with increased towing capability. Additionally, the 1350 model comes equipped with a park pawl. This means no air brake is required and the driver will experience ease of use comparable to an automotive pick-up truck.

The 1350 model has been released in the International TerraStar truck as the exclusive transmission offering and with the Allison Optimized package, which helps to conserve fuel, provide better acceleration and carry a load more efficiently.

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Allison Transmission to Expand Indy Campus

July 18, 2011 by · Leave a Comment 

A planned expansion by Allison Transmission at its headquarters in Indianapolis will be considered this week by the city’s Metropolitan Development Commission (MDC).

The transmission manufacturer is seeking tax abatement on the investment that is expected to create more than 200 jobs. The plan would also retain more than 2,400 positions.

The abatement request is up for preliminary approval by the MDC Wednesday (July 20).

Along with the $63 million investment in the abatement proposal, Allison also plans to invest $30 million in upgrades to existing buildings on its campus.

Allison Transmission Holdings Inc. recently filed with federal regulators for a $750 million initial public offering.

 

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Spartan Motors Chassis Inc. Names Top Suppliers

March 18, 2010 by · Leave a Comment 

Spartan Motors Chassis Inc., a subsidiary of Spartan Motors Inc., recognized its top-performing suppliers at its 8th Annual Supplier Conference Wednesday (March 17) in Charlotte, Mich.

“Spartan strives to procure high quality products and services that are delivered on time to support daily operations, but are also innovative and add value to the Spartan Chassis product lines,” Jeremy Wilson, director of supply chain management, stated in a news release. “Spartan’s suppliers play a critical role in ensuring our success in today’s competitive environment.”

The following companies met or exceeded Spartan’s standards of excellence for 2009:

  • Allison Transmission, Indianapolis.
  • American Cooling Systems, Bloomfield Hills, Mich.
  • Bolton Conductive Systems, Walled Lake, Mich.
  • Formed Solutions Inc., Holland, Mich.
  • Harris Battery Co. Inc., Bolivar, Ohio.
  • Professional Metal Works, East Lansing, Mich.
  • Redmer Industries, Lansing, Mich.
  • Seats Inc., Westerville, Ohio.
  • St. Clair Technologies Inc., Wallaceburg, Ontario.
  • Titan Wheel Corp., Chicago.
  • Vehicle Improvement Products, Antioch, ill.
  • Wiley Metal Fabricating Inc, Marion, Ind..

The performance of Spartan’s suppliers is continually assessed and evaluated by the Supplier Performance Action Review Committee (SPARC). To meet Spartan’s standards of excellence, suppliers must meet performance criteria related to quality, delivery, customer support and competitiveness.

The SPARC awards, now in their eighth year, recognized the top 4% of Spartan’s more than 300 suppliers for their ability to perform on time and on budget.

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