Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) is reporting third quarter net income of $46.5 million, compared to $68.8 million during the same period last year. The company says net sales dipped to $493 million from $553.3 million in the third quarter of 2014.
The manufacturer says it is not providing guidance specific to the next quarter, but it does anticipate decreased sales to continue, citing expected lower demand in global Off-Highway and Defense end markets.
Chief Executive Officer Larry Dewey said "Allison’s third quarter 2015 results are within the full year guidance ranges we provided to the market on July 27. Net sales in the North America On-Highway end market improved on a year-over-year basis for the ninth consecutive quarter. The year-over-year reductions in the global Off-Highway and Service Parts, Support Equipment & Other end markets net sales are consistent with the previously contemplated impact of lower energy and commodity prices. We anticipate no meaningful relief from the global Off-Highway end markets challenges in the fourth quarter and are affirming our full year net sales guidance of a decrease in the range of 6 to 8 percent year-over-year. Allison continued its prudent and well-defined approach to capital allocation during the third quarter by settling $181 million of share repurchases, paying a dividend of $0.15 per share and repaying $6 million of debt."
The company has a presence in 80 countries and is marking its 100th year in business.