Allison Transmission Holdings Inc. has reported net sales for the third quarter of $692 million, a 16 percent increase from the same period in 2017. The company says this increase in net sales was principally driven by higher demand in the global on-highway, outside North America off-highway and service parts, support equipment and other end markets.
Net income for the quarter was $167 million, compared to $111 million for the same period in 2017. Adjusted EBITDA, a non-GAAP financial measure, for the quarter was $295 million compared to $241 million for the same period in 2017.
David Graziosi, president and CEO of Allison Transmission, commented, “I am pleased to report that third quarter 2018 net sales growth exceeded our expectations and the guidance ranges provided to the market on July 30, and 2018 is on track to be a record year.”
Graziosi continued, “Year-over-year net sales growth of 16 percent was surpassed once again, by even stronger growth in net income, up 50 percent, Diluted EPS, up 69 percent and Adjusted EBITDA, up 22 percent. Also during the quarter, we continued to execute our well-defined approach to capital structure and allocation by settling $86 million of share repurchases and paying a dividend of 15 cents per share. Given third quarter 2018 results and current end market conditions, we are raising our full year 2018 net sales guidance from an increase in the range of 15 to 18 percent to an increase in the range of 18 to 19 percent.”
Third Quarter Non-GAAP Financial Measures
Adjusted EBITDA for the quarter was $295 million compared to $241 million for the same period in 2017, an increase of $54 million. The increase in Adjusted EBITDA was principally driven by increased net sales, price increases on certain products and favorable material costs partially offset by increased selling, general and administrative expenses, increased product initiatives spending, and increased manufacturing expenses commensurate with increased net sales.
Full Year 2018 Guidance Update
Our updated full-year 2018 guidance includes a year-over-year net sales increase in the range of 18 to 19 percent, net income in the range of $600 million to $620 million and Adjusted EBITDA in the range of $1,090 million to $1,110 million.
