Allison Reports Second-Quarter Sales Slipped, Income Rose
Automatic transmission supplier Allison Transmission Holdings Inc. reported higher income and lower revenue for the second quarter as on- and off-highway demand slipped.
Net income for the period, ended June 30, was $61 million compared with $54 million for the same period in 2015, Allison reported. The increase was driven principally by redemption of long-term debt, and premiums and expenses on the 2015 tender offer to purchase certain senior notes, according to the company.
Net sales for the second quarter fell 7% to $475 million, compared with $511 million in the same period in 2015.
North America on-highway end-market net sales were down 5% to $264 million from $277 million in the same period in 2015 principally driven by lower demand for its Highway Series and Rugged Duty Series models.
North America off-highway end-market net sales were down 90% year-over-year, falling to $1 million from $10 million in the same period in 2015 and down 80% on a sequential basis principally driven by lower demand from hydraulic fracturing applications, according to Allison's report.
Service Parts, Support Equipment & Other end-market net sales were down 5% to $89 million from $94 million in the year-earlier period, principally driven by lower demand for global off-highway service parts and North America support equipment, it said.
Meanwhile, Allison said adjusted free cash flow for the quarter was $157 million compared to $138 million for the same period in 2015. The $19-million increase was principally driven by reductions in operating working capital and lower cash interest expense, partially offset by decreased net sales and increased capital expenditures.
