Allison Transmission reports big jumps in profit, revenue

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Allison Transmission Holdings Inc. on Wednesday reported major gains in profit and revenue in the fourth quarter.

The Indianapolis-based manufacturer announced fourth-quarter earnings of $215 million, or $1.52 per share, up from $61 million, or 37 cents per share, in the same quarter of the previous year.

Earnings, adjusted for pretax gains, were 81 cents per share, topping Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for adjusted earnings of 59 cents per share.

The automatic transmission maker posted better-than expected revenue of $588 million in the period, up from $469 million in the year-ago quarter. Six analysts surveyed by Zacks expected $569 million.

Sales in the North America On-Highway business unit rose 24 percent, to $270 million. And sales were up 29 percent in the "service parts, support equipment & other" category, to $139 million.

For the year, the company reported profit of $504 million, or $3.36 per share. Revenue was reported as $2.26 billion.

Allison Transmission shares closed at $42.23 each Wednesday, a climb of 11 percent in the last year.

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