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Allison Transmission Holdings Inc. reported Q4 net income nearly doubled as diluted earnings per share jumped 117% and revenue in the period climbed 20%.
For the quarter ended Dec. 31, net income soared to $118 million, or $1.15 per diluted share, compared with $60 million, 53 cents, a year earlier.
Revenue increased to $644 million compared with $535 million in the 2020 period.
The Indianapolis-based company reported 2021 was another notable year for its growth objectives. Net sales accelerated in the fourth quarter, largely driven by a strong recovery to pre-pandemic levels in the Outside North America On-Highway end market.
“Fourth-quarter net sales were up sequentially across all of our end markets, as our global customers and partners worked diligently to meet global demand,” said Allison Chairman and CEO David Graziosi. “I am proud of the Allison team’s continued execution and strong performance, and excited about the future, as we continue to fund growth initiatives that will drive further success and are aligned with our long-term strategy of continuous global market leadership expansion.”
Engineering research and development expenses for the quarter were $50 million, an increase of $10 million compared with a year earlier. The increase was principally driven by increased product initiatives spending, according to the company.
North American on-highway revenue slipped to $281 million compared with $284 million in the 2020 quarter, down 1%.
All other segments increased revenue compared with a year earlier:
- North America (NA) off-highway — reached $27 million compared with $1 million. Up 2,600%.
- Defense — totaled $54 million compared with $44 million. Up 23%.
- Outside NA on-highway — reached $106 million compared with $77 million. Up 38%.
- Outside NA off-highway — totaled $35 million compared with $11 million a year earlier. Up 218%.
- Service, parts, support equipment and other — climbed to $141 million compared with $118 million in the 2020 period. Up 19%.
For the full year, Allison reported net income of $442 million, $4.13, compared with $299 million, $2.62, in the 2020 period.
Revenue increased to $2.4 billion compared with $2 billion in the 2020 period.
In its guidance for all of 2022, Allison noted it expects net income in the range of $430 million to $520 million and revenue in the range of $2.6 billion to $2.7 billion.
“Our 2022 net sales guidance reflects higher demand in the Global On-Highway, Global Off-Highway and Service Parts, Support Equipment & Other end markets as a result of the ongoing global economic recovery, continued strength in customer demand and price increases on certain products. Our full-year 2022 guidance also reflects a 10% increase in engineering research and development expenses to fund product development initiatives in support of organic growth across all of our end markets,” it said in a release.
Allison Transmission designs and manufactures vehicle propulsion systems for commercial and defense vehicles. It is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions, and makes electrified propulsion systems too.
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