Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) says record second quarter net sales helped drive higher profit. The heavy industry manufacturer is reporting net income of $174 million, compared to $95 million during Q2 of 2017. Net sales rose 23 percent to $711 million. Chief Executive Officer David Graziosi says Allison is increasing full-year net sales guidance to 15 to 18 percent from 10 to 14 percent.
Graziosi added "our established and well-defined approach to capital structure and allocation remains intact. During the quarter, Allison settled $244 million of share repurchases, repaid $25 million of long-term debt and paid a dividend of $0.15 per share. In addition, the board of directors has approved an increase to the existing stock repurchase authorization of up to an additional $500 million."
The company attributes the boost in sales to increased demand for products in its Global On-Highway, Global Off-Highway and Service Parts, Support Equipment & Other end markets. Allison expects sales in the third quarter to rise, as well. Net income guidance for the full year is now between $570 million and $600 million.
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