[Stay on top of transportation news: Get TTNews in your inbox.]
Allison Net Income, Revenue Surge in Third Quarter
Allison Transmission Holdings Inc. net income and revenue surged in the third quarter as all segments performed well.
Net income for the period ended Sept. 30 more than doubled, hitting $111 million, or 75 cents, compared with $45 million, or 27 cents, in the 2016 period.
Revenue increased 37% to $595 million compared with $434 million a year earlier.
“Margins and net cash provided by operating activities for the third quarter approached all-time highs,” Chairman and CEO Lawrence Dewey said in a statement.
The North America On-Highway segment — the company’s largest — posted sales of $282 million, up 26% from the same period in 2016 and driven by higher demand for its Rugged Duty Series and Highway Series models.
Revenue from service parts and support equipment jumped 45% to $139 million.
Sales in the North America off-highway segment ballooned 1,600%, rising to $17 million compared with $1 million a year earlier — reflecting higher demand from hydraulic fracturing applications.
The Indianapolis-based company raised its full-year 2017 revenue guidance from an increase in the range of 15-17% to an increase in the range of 21-22%.
