Skip to main content

Allison Transmission profits up in 1Q15

Published by
World Coal,


Adjusted net income for Allison Transmission 1Q15 was US$150 million, compared to US$108 million for the same period in 2014, increasing by US$42 million. This increase is reported to be principally driven by increased adjusted EBITDA and decreased money interest expense.

Adjusted EBITDA for 1Q15 was US$190 million, 37.7% of net sales, compared to US$166 million, 33.6% of net sales, for 1Q14. Excluding US$3 million of technology-related license expenses, adjusted EBITDA for 1Q14 was US$169 million, 34.3% of net sales. Certain products, increased net sales, lower product warranty expense, US$3 million of 2014 technology-related license expenses and decreased global commercial spending activities partially offset by increased product initiatives spending is reported to be the reason for this increase.

1Q15 gross profit was US$239 million, increasing of 8% from US$223 million for the same period in 2014. Gross margin for the quarter was 47.5%, an increase of 240 basis points from a gross margin of 45.1% for 1Q14. This increase was principally driven by price increases on certain products and increased net sales.

North America off-highway end market net sales increased 83% y/y, chiefly due to higher demand from hydraulic fracturing applications and down 39% on a sequential basis, principally driven by lower demand from hydraulic fracturing applications.

Outside North America off-highway end market net sales decreased 24% from the same period in 2014, resulting principally from lower demand in the mining sector and declined 16% sequentially, due to lower demand in the China energy sector partially offset by higher demand in the mining sector.

Service Parts, Support Equipment & Other end market net sales reduced by 8% from the same period in 2014 principally driven by lower demand for North America service parts and were down 13% on a sequential basis.

Written by Harleigh Hobbs.

Read the article online at: https://www.worldcoal.com/mining/28042015/allison-transmission-profits-up-in-1q15-2213/

You might also like

DOE to develop useful products from coal and coal wastes

The U.S. Department of Energy’s Office of Fossil Energy and Carbon Management has announced up to US$6 million available for research and development projects that will repurpose domestic coal resources for products that can be employed in clean energy technologies.

 
 

Embed article link: (copy the HTML code below):