Allison Transmission Holdings Inc. reported net income surged and record revenue in the second quarter on increased demand across all its end markets.
Net income for the period ended June 30 was $174 million, or $1.29 per diluted share, up 83% compared with $95 million, or 63 cents, in the 2017 period.
Revenue rose 23% to a record $711 million in the quarter compared with $580 a year earlier.
Allison is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and is a leader in electric hybrid-propulsion systems for city buses.
Based on the quarterly results, the company forecast full-year 2018 net sales would increase 15-18% compared with 10-14% as previously stated.
Among quarterly highlights, North America on-highway net sales were up 9% from the same period in 2017, driven by higher demand for the Rugged Duty Series models — which are suited for any vehicle that operates on/off highway and requires power takeoff operation, according to the Indianapolis-based company.
North America off-highway net sales were up $26 million from the same period in 2017 on greater demand from hydraulic fracturing applications.
Outside North America, on-highway net sales rose 19% from the 2017 period, driven by higher demand in Asia and Europe.
Outside North America, off-highway end market net sales were up $14 million from the same period in 2017, driven by improved demand in the energy, mining and construction sectors.
Service parts, support equipment and other end market net sales were up 24% compared with a year earlier amid higher demand for global service parts and support equipment.
“Furthermore, our established and well-defined approach to capital structure and allocation remains intact, Allison CEO David Graziosi said in a statement. “During the quarter, Allison settled $244 million of share repurchases, repaid $25 million of long-term debt and paid a dividend of 15 cents per share. In addition, the board of directors has approved an increase to the existing stock repurchase authorization of up to an additional $500 million.”