Allison Transmission reported first-quarter 2018 net income of $151 million, or $1.09 per share, up 82% from the $83 million, or 53 cents per share, of net income reported in the first quarter of 2017.
Analysts surveyed by Bloomberg expected net income of $160.8 million, or $1.13 cents per share.
In reporting the figures April 30, the company attributed the rise to increased gross profit and decreased income tax expense, offset in part by higher selling, general and administrative costs, increased product initiative spending and increased interest expense.
Net sales for the first quarter were $663 million, up 33% from $499 million a year ago.
Allison CEO Lawrence Dewey said the increase in sales was “principally driven by stronger than anticipated demand in the global on-highway, service parts, support equipment and other and global off-highway end markets.”
Among its major divisions, the North American on-highway segment reported sales of $315 million, up 24% from $255 million, while the outside North America on-highway segment had sales of $91 million, up 26% from $72 million. The service parts segment had sales of $151 million, up 33% from $118 million.
Indianapolis-based Allison is a global provider of commercial duty fully-automatic transmissions.