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/