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Allison Transmission Holdings Inc. posted net profit and revenue gains in the second quarter as demand continued.
Net income for the three months ended June 30 was $122 million, or $1.26 per diluted share, on revenue of $664 million, compared to net income of $110 million, or $1. $.01, on revenue of $603 million a year earlier.
The company noted that the revenue gain reflected price increases and resilient customer demand despite continued supply chain challenges, as well as continued execution of its own growth initiatives.
ALSN_Q2 2022 Press Results … by Transport Topics
“Second quarter 2022 results demonstrate strong year-over-year performance. Net sales growth of 10% was once again outpaced by diluted earnings per share growth of 25%,” said Allison Chairman and CEO David Graziosi said in a statement, “Returns per share above net sales and net income growth are driven by Allison’s disciplined and well-defined approach to asset allocation. Despite a challenging environment, the Allison team continues to deliver balanced execution, while driving multi-year growth initiatives in all of our end markets.
Adjusted free cash flow for the quarter was $36 million, down $59 million from $95 million for the same period in 2021. The decrease reflects lower net cash from operating activities, partially offset by lower capital expenditures.
In North America, its largest market, on-road revenue increased to $340 million in the second quarter from $302 million a year earlier, reflecting continued strength in customer demand for delivery of the latest kilometer, regional transport and specialized trucks, depending on the company. Off-road revenue reached $20 million compared to $9 million a year earlier. Defense revenue fell to $29 million from $48 million a year earlier.
On-road revenue from outside North America was $105 million, compared to $98 million a year earlier. Off-road revenue was $32 million compared to $18 million.
During the quarter, its spare parts, support equipment and other segments increased revenue to $138 million, from $128 million in the 2021 period.
For the six-month period, Allison reported net income of $251 million, $2.56, on revenue of $1.3 billion, compared to net income of $230 million, $2.07, on revenues of $1.1 billion a year earlier.
Allison reported record non-North American on-road end-market revenue for the first half of the year.
Allison Transmission designs and manufactures propulsion solutions for commercial and defense vehicles and is the world’s largest manufacturer of medium and heavy duty fully automatic transmissions. Allison products are used in a wide variety of applications, including highway trucks (distribution, waste, construction, fire and emergency) and buses (school, transit and coach). It has 1,400 independent distributors and resellers worldwide and a presence in more than 150 countries.