April 16, 2013
A sluggish heavy-duty market pulled sales figures for Allison Transmission into the mire.
“Based on currently available information, for the first quarter of 2013, we expect net sales to be in the range of $455 to $460 million and Adjusted EBITDA excluding technology-related license expenses, a non-GAAP financial measure, to be in the range of $144 to $149 million,” the company says in a preliminary earning release.
The company expects to post a net income of $27.5 million, down substantially from the $58 million posted in the first three months last year.
“These expected results for the first quarter of 2013 are consistent with management’s expectations, and reflect considerably lower demand in the North America energy sector’s hydraulic fracturing market and the previously considered reductions in defense net sales,” the company says.
Despite slumping sales, Allison posted a robust profit margin of approximately 32 percent.