Allison Transmission Losses Continue

Allison Transmission is headquartered in Indianapolis.

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Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) is reporting first quarter net income of $48.3 million, down from $68.4 million during the same period last year. The company says net sales were also down eight percent, driven by lower demand in the global off-highway and service parts markets.

Chief Executive Officer Lawrence Dewey says the company’s first quarter results were within the full-year guidance provided in February. "The year-over-year reductions in the global Off-Highway and Service Parts, Support Equipment & Other end markets net sales are consistent with the previously contemplated impact of low energy and commodity prices. Allison demonstrated solid operating margins and free cash flow while executing its prudent and well-defined approach to capital structure and allocation. During the first quarter, we settled $33 million of share repurchases, paid a dividend of $0.15 per share and repaid $6 million of debt."

Dewey says the company does not anticipate any meaningful relief from the market challenges. In February, Allison Transmission reported a full year net income of $182.3 million in 2015, which was down from $228.6 million in 2014.