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Allison Transmission Posts Profit Despite Flat Sales
Allison Transmission Holdings Inc. swung to net earnings of $413 million in April-June 2012 from a $17 million loss in the same period a year earlier.
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Allison Transmission Holdings Inc. swung to net earnings of $413 million in April-June 2012 from a $17 million loss in the same period a year earlier.
A $350 million tax benefit inflated the latest results. Operating income was unchanged at $120 million.
Revenue edged up 1% to $559 million. The company says demand grew for transmissions for medium- and heavy-duty trucks in North America and off-highway vehicles abroad. But those gains were mostly offset by a sharp drop in North American sales of gearboxes for the off-road vehicles used by natural gas producers for hydraulic fracturing.
The Indianapolis, Ind.-based company lowered its full-year outlook for revenue growth to 1%-3% from its previous prediction of 5%-7%. Allison attributes its more cautious forecast to "heightened market uncertainty."
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