Allison Doubles Dividend, Says 1Q Sales Decline

Allison Transmission Holdings said Monday it is doubling its dividend to 12 cents a share, and the company said in a preliminary estimate that its first-quarter sales slid from a year ago.

Allison, which makes fully automatic transmissions for medium- and heavy-duty trucks, said it estimates its first-quarter sales were $455 million to $460 million, down from $602 million a year ago.

The manufacturer also affirmed its February outlook that its 2013 sales will be 6% to 8% below last year’s sales.

Allison said the preliminary results “reflect considerably lower demand” in the hydraulic fracturing market in North America and lower defense sales. It received $305 million of its $2.14 billion in revenue last year from military customers, Bloomberg News reported.

The dividend payment will be made on May 31 to stockholders of record as of May 17, the company said.