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Allison Transmission Holdings said its third-quarter income increased, but revenue declined from a year ago on reductions in U.S. defense spending and lower demand from the North American hydraulic fracturing market.
Net income rose to $44.5 million, or 24 cents per share, from $32.2 million, or 18 cents, a year ago. The heavy-duty truck-transmission manufacturer said revenue dropped 6% to $466 million.
In addition to lower demand in the fracturing market, the transmission manufacturer also cited fewer sales of hybrid-propulsion systems for transit buses.
The company reported North American on-highway sales increased 12% from a year prior, driven by demand for rugged-duty and highway-series models.
Defense sales dropped 30%, and off-highway sales declined 59% from the same period last year.