Allison Transmission Third-Quarter Profit Rises 14%
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Allison Transmission Holdings posted net income of $158 million in the third quarter of 2023, an increase of 14% from $139 million in the same period in 2022, the company said Oct. 25.
Diluted earnings per share for the transmission manufacturer came in at $1.76, a 21% jump from $1.45 in the year-earlier period. The company reported third-quarter net sales of $736 million, a 4% rise compared with $710 million in the same period a year earlier.
Allison noted that an 11% increase in North American On-Highway division sales drove the overall increase; the unit reported that sales for Q3 totaled $376 million, compared with $340 million in the year-ago period. Allison said the increase was primarily driven by strength in customer demand for Class 8 vocational and medium-duty trucks and price increases on certain products.
Alongside this, sales in the company’s Service Parts, Support Equipment and Other unit rose 9% to $171 million compared with $157 million a year ago, principally because of strength in North American on-highway service parts and support equipment as well as price increases, Allison said.
“Allison’s third-quarter 2023 results demonstrate the sustained strength in our North America On-Highway and Service Parts end markets and the continued focus of our team to drive operational and financial performance,” CEO David Graziosi said in a statement accompanying the results.
“Sales gained momentum throughout the quarter after a slow start, driven by supply chain constraints and expanded [original equipment manufacturer] shutdowns in July, resulting in August and September sales volumes above monthly levels in the first half of the year,” he added during the company’s earnings call.
Expectations are high for the final three months of 2023, Chief Financial Officer Frederick Bohley said during the earnings call.
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“We do have an elevated expectation for Q4 and outside North America Off-Highway versus what we saw in Q3,” Bohley said. “Relative to North America, that’s something we’re going to continue to closely monitor. There’s a significant amount of demand for medium duty and Class 8 straight, and we feel very solid about where that order book is going into the fourth quarter.”
Allison reaffirmed its full-year 2023 guidance of sales in the range of $2.96 billion to $3.04 billion and a profit in the range of $575 million to $625 million, citing Q3 results and current end-market conditions.
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