Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) is reporting net income of $182.3 million in 2015, down from $228.6 million the previous year. The company says lower demand in the global off-highway and defense end markets contributed to the decrease.
Allison is also reporting fourth quarter net income of $13 million, down from $50.5 million during the same period in 2014.
"Allison demonstrated solid operating margins and free cash flow while executing its prudent and well-defined approach to capital structure and allocation," said Chief Executive Officer Lawrence Dewey. "During the fourth quarter, we refinanced all debt maturing in 2017 to 2019, settled $10 million of share repurchases, paid a dividend of $0.15 per share and repaid $6 million of debt. Given expectations for tempering demand conditions in the North America On-Highway end market, no meaningful relief from the global Off-Highway end markets challenges and divergent global economic environments, Allison is taking a guarded approach to 2016. As we have done during other periods of meaningful uncertainty, Allison will proactively implement initiatives to closely align costs and programs across our business with actual end market conditions and growth opportunities."
The company says it expects first quarter 2016 net sales to be lower than the first and fourth quarters of 2015. Click here to see the full earnings report.