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Allison Transmission Quarterly Profit Drops 75%
Allison Transmission Holdings Inc. posted net income of $11 million in the fourth quarter of last year compared with $45 million a year earlier.
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Allison Transmission Holdings Inc. posted net income of $11 million in the fourth quarter of last year compared with $45 million a year earlier. Revenue fell 6% to $487 million.
The Indianapolis, Ind.-based company says labor and warranty costs accounted for the bulk of the earnings slide. Allison attributes the October-December sales decline to a 76% plunge North American demand for transmissions for off-highway vehicles used in the energy sector.
For all of 2012, the company's net profit quintupled year over year to $514 million, aided by a $298 million tax benefit. Revenue dipped 1% to $2.1 billion.
Allison predicts that its revenue will drop 6%-8% in 2013, including "significantly lower" sales in the current quarter.
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