Allison Transmission Profit Rises
Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) is reporting full-year net income of $215 million in 2016, up from $182 million the previous year. Despite the increase, the company saw a drop in net sales for the year.
Allison is also reporting fourth quarter net income of $61.2 million, up from $13 million during the same period in 2015. Net sales for the fourth quarter also decreased 2 percent.
"Allison’s fourth quarter 2016 results exceeded the full year guidance ranges we provided to the market on October 24 principally due to stronger than anticipated demand conditions in North America Off-Highway service parts and Global On-Highway products," said Lawrence Dewey, chief executive officer of Allison. "Allison demonstrated solid operating margins and free cash flow while executing its well-defined approach to capital structure and allocation. During the fourth quarter, we settled $87 million of share repurchases and paid a dividend of $0.15 per share."
The earnings report follows the company’s announcement in December that Dewey will retire in 2018. Allison did not give a time frame for the search for Dewey’s successor.