
Allison Transmission Holdings Inc. on Monday reported gains in both profit and revenue for the final quarter of last year and for all of 2014.
Allison Transmission Holdings Inc. on Monday reported gains in both profit and revenue for the final quarter of last year and for all of 2014.


Allison Transmission Holdings Inc. on Monday reported gains in both profit and revenue for the final quarter of last year and for all of 2014.
Net income totaled $50.5 million in the final quarter compared to $42.9 million a year earlier, or diluted earnings per share of 28 cents versus 23 cents. Net sales on the fourth quarter were $544 million, an 11% increase from the same period in 2013.
The increase in net sales was principally driven by the continued recoveries in the North America on-highway and off-highway end markets, and higher demand in the service parts, support equipment and other end market, partially offset by lower demand in the outside North America on-highway and North America hybrid-propulsion systems for transit bus end markets, according to the Indiana-based maker of transmissions for medium-duty and heavy-duty vehicles.
For all of last year, Allison had net income of $228.6 million compared $165.4 a year earlier, or diluted earnings per share of $1.25 compared to 88 cents during the same comparable time periods.
“Our fourth quarter 2014 results exceed the guidance ranges we provided to the market on Oct. 2,” said Lawrence E. Dewey, chairman, president and CEO. “Allison continued to demonstrate strong operating margins and free cash flow while investing in growth opportunities despite challenging conditions in the outside North America end markets.”
North America on-highway end market net sales were up 22% from the same period in 2013, principally driven by higher demand for Rugged Duty series models and flat on a sequential basis due to higher demand for Highway Series models, according to the company.
Allison said outside North America, on-highway end market net sales were down 24% from the same period in 2013, reflecting weakness in China’s bus and the European truck market, and down 11% on a sequential basis due to lower demand in China’s bus and truck markets and Japan’s truck market.
The company’s service parts, support equipment and other end market net sales were up 13% from the same period in 2013 principally driven, it said, by higher demand for North America off-highway service parts, and down 4% on a sequential basis due to lower demand for North America on-highway service parts consistent with seasonal aftermarket activity levels and global on-highway support equipment commensurate with decreased transmission unit volumes, partially offset by higher demand for North America off-highway service parts.
Allison expects 2015 net sales to be in the range of flat to down 5% compared to 2014.
“Our 2015 net sales guidance reflects a cautious approach given the heightened level of uncertainty and the lack of near-term visibility and confidence in the global Off-Highway end markets,” the company said in a statement. “Allison's 2015 net sales outlook also assumes a continued recovery in the North America on-highway end market, previously considered reductions in U.S. defense spending, continued weakness in the outside North America on-highway end market and lower demand for North America hybrid-propulsion systems for transit bus due to engine emissions improvements and non-hybrid alternatives”
While Allison did not provider specific first quarter 2015 guidance, it does expect first quarter net sales to be higher than the same period in 2014.
“The anticipated year-over-year increase in first quarter net sales is principally driven by higher demand in the North America on-highway and off-highway end markets, partially offset by previously considered reductions in defense net sales and lower demand in the North America hybrid-propulsion systems for transit bus end market,” the company said.

SAF-Holland reengineered the UltraLite40 Slider for the ULX40 Mechanical Sliding Suspension and Axle System to reduce weight, improve durability, extend trailer life, and increase payload efficiency.
Read More →
Volvo Trucks North America highlighted new connectivity, safety tech and production investments at TMC. The OEM also signaled that a new heavy-haul flagship tractor is coming soon.
Read More →
The system combines a fifth-wheel air release with stowage for air and electrical connections, helping prevent damage and reducing driver injury risk.
Read More →
New Haldex sensor technology from SAF-Holland integrates with telematics systems to give fleets continuous insight into air disc brake condition.
Read More →
The company’s expanded EPEQ ecosystem includes flexible solar panels, lithium batteries, hydraulic power systems, and a portable fast charger for electric trucks.
Read More →
Phillips Connect Smart Trailer enhancements give fleets deeper operational insights from trailers -- even when another provider supplies basic GPS tracking.
Read More →
Accuride’s patent-pending surface-coating technology targets filiform corrosion and promises easier cleaning, longer-lasting gloss, and greater durability for aluminum truck wheels.
Read More →
New approval for Valvoline Premium Blue One Solution Gen2 allows fleets running Cummins X15 engines to extend oil drain intervals by up to 25,000 miles -- reaching intervals as high as 100,000 miles.
Read More →
Peterson’s Genesis lighting system and repairable J560 connector target two persistent fleet problems: LED light failures and costly electrical connector downtime.
Read More →
Many fleets extended truck replacement cycles during recent market disruptions. But holding equipment too long can lead to higher repair costs, longer downtime, and new operational risks.
Read More →