Allison Rides Service Parts Growth to Higher First-Quarter Results
Allison Transmission Holdings Inc. reported first-quarter net income and revenue surged on growth in its North American parts business, the company said.
Net Income for the period ended March 31 rose to $83 million, or 52 cents per share, compared with $48 million, or 28 cents, for the same period in 2016.
Revenue rose 8% to $499 million year-over-year.
The results were “driven by stronger-than-anticipated demand for North America service parts” for its automatic transmissions, Chairman and CEO Lawrence Dewey said in a statement.
Service parts, support equipment and other end market revenue was up 39%, compared with from the same period in 2016 and up 9% on a sequential basis, it said.
“Given first-quarter 2017 results and current end markets conditions we are updating our full year net sales guidance to an increase in the range of 7.5-10.5%," Dewey said.
