Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) is reporting third quarter net income of $44.6 million, down from $46.5 million during the same period last year. The company says net sales were also down 12 percent, driven by lower demand in the North American on-highway and off-highway markets.
Chief Executive Officer Lawrence Dewey says the company’s third quarter results were within the full-year guidance provided in July. "The year-over-year reductions in the North America On-Highway and Off-Highway, and Service Parts, Support Equipment & Other end markets net sales are consistent with tempering demand conditions in the North America On-Highway end market and the previously contemplated impact of low energy prices. Allison continued to demonstrate solid operating margins and free cash flow while executing its prudent and well-defined approach to capital structure and allocation. During the third quarter, we settled $77 million of share repurchases, paid a dividend of $0.15 per share and refinanced our long-term debt."
The company says the decline in net income was largely driven by a 13 percent decrease in gross profit. Allison is also reporting year-to-date net income of $154 million, down from $169 million during the same period last year.