Indianapolis-based Allison earned $57.2 million, or 32 cents per share, up from $50.5 million, or 27 cents per share, in the same period in 2013. Revenue rose 5% to $536 million.
On-highway sales in North America increased 13% to $243 million in the second quarter, and off-highway sales jumped 188% to $23 million.
The company said the dramatic rise in off-highway sales was driven by higher demand from hydraulic fracturing uses.
“Our second-quarter 2014 results are within the full-year guidance ranges we affirmed on April 16. Net sales improved on a year-over-year basis for the third consecutive quarter, led by the continued recoveries in the North America on-highway and off-highway end markets partially offset by weakness in the outside North America end markets,” Allison Chairman and CEO Lawrence Dewey said in a statement.
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Indianapolis-based Allison Transmission Holdings Inc. reported double-digit declines in net income and revenue for its first quarter.
Sales for the quarter totaled $457 million, a 24% decrease from the same period in 2012. Net Income for the quarter was $28 million compared to a net income of $58 million for the same period in 2012, a decrease of $30 million.
Allison said the decrease in net sales was principally driven by considerably lower demand in the North America energy sector’s hydraulic fracturing market, relative to the same period in 2012, due to weakness in natural gas pricing, previously considered reductions in U.S. defense spending and weaker global on-highway end markets. Partially offsetting these declines were price increases on certain products.
Lawrence E. Dewey, chairman, president and CEO of Allison Transmission, commented, “Our first quarter 2013 results are consistent with the guidance we provided to the market on Feb. 19. Despite challenging end markets demand conditions, Allison continued to demonstrate strong operating margins and cash flow by executing initiatives to proactively align costs and programs across our business. Although these initiatives affected our entire organization, we believe Allison continues to be well positioned for a cyclical recovery in the North America on-highway end market while supporting its outside North America growth plans.”
Dewey said the company refinanced the remaining balance of a Senior Secured Credit Facility Term B-1 Loan due in 2014, reduced the applicable borrowing margin of our Senior Secured Credit Facility Term B-2 Loan due in 2017, extended the maturity of its $400 million revolving credit facility to 2016 and paid a quarterly dividend to our shareholders.
In addition, on April 15, Allison’s board approved an increase in its quarterly cash dividend from 6 cents to 12 cents per share, “further highlighting our commitments to cash flow generation and the return of capital to shareholders,” according to Dewey.