INDIANAPOLIS – Allison Transmission Holdings has reported net sales of $559 million for the second quarter, a 1 percent increase over the same period in 2011.
Net income for the quarter was $413 million, compared to a net loss of $17 million for the same period in 2011, an increase of $430 million.
The company said this increase in net sales was principally driven by increased demand for North America on-highway, wheeled military and outside North America off-highway products, supported by price increases on certain products. Growth in these markets was largely offset by decreased demand in the North America off-highway energy sector, resulting from weakness in natural gas pricing and fewer sales of North America hybrid-propulsion systems for transit buses. The company’s outside North America on-highway net sales in the quarter were in line with the prior year, due to weakness in European end-markets largely offsetting growth in China and Latin America.
Lawrence Dewey, chairman, president and CEO of Allison Transmission, commented, "Following strong first quarter results we are pleased to report continued sound financial performance supported by attractive year-over-year growth in our core North America on-highway end-market, and in our outside North America off-highway end-market. We achieved this growth despite signs of slowing economic growth rates and decreased demand for transmissions used in North America energy sector hydraulic fracturing processes. We continued to demonstrate strong operating margins and a robust level of cash flow while investing in growth opportunities, including underserved markets and outside North America manufacturing. We remain committed to debt reduction and the return of capital to our shareholders."
