IBJNews

Allison expects 50-percent drop in quarterly earnings

Back to TopCommentsE-mailPrintBookmark and Share

Allison Transmission Holdings Inc. said Monday that it expects its first-quarter earnings to fall by more than half, but that would still beat current Wall Street predictions.

The Indianapolis-based company, which makes automatic transmissions for commercial, military and transit vehicles, also said it's doubling its quarterly cash dividend and announced that some of its shareholders plan to sell 22 million shares of its stock in an offering.

For the quarter ended March 31, Allison projected earnings of $27.5 million, down from $58 million in the year-ago period. Revenue is expected to total between $455 million and $460 million, compared with $601.9 million a year ago.

Analysts, on average, expect earnings of $21.2 million on $459.3 million in revenue, according to FactSet.

The company said the quarter's results reflect considerably lower North American demand for equipment used in hydraulic fracturing, along with lower defense sales.

Allison reaffirmed its full-year guidance of a sales decline of between 6 percent and 8 percent. Based on the company's 2012 results, the guidance implies 2013 revenue of between $1.97 billion and $2.01 billion. Analysts expect $1.99 billion.

The company said that for the full-year, it still expects low demand from the North Americas hydraulic fracturing market, reductions to U.S. defense spending, along with lower demand for North American hybrid-propulsion systems used in buses.

The company also said that its board approved the increase of its quarterly cash dividend by 6 cents to 12 cents. The dividend will be paid on May 31 to shareholders of record as of May 17.

Allison also said that a group of its investors plans to sell 22 million shares of its common stock. The offering's underwriters also have the option to buy an additional 3.3 million shares.

After the offering, the group will still own about 70 percent of Allison's common stock, or about 68 percent if the underwriters fully exercise their option.

Allison shares fell $1.13, or 4.8 percent, to $22.66 in Monday morning trading. Its shares peaked for the past year at $24.24 on Feb. 19. They traded as low as $15.82 last July.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

  2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

  3. It's empowering for this niche community to know that they have an advocate on their side in case things go awry. http://www.youtube.com/watch?v=Lrst9VXVKfE

  4. Apparently the settlement over Angie's List "bundling" charges hasn't stopped the practice! My membership is up for renewal, and I'm on my third email trying to get a "basic" membership rather than the "bundled" version they're trying to charge me for. Frustrating!!

  5. Well....as a vendor to both of these builders I guess I have the right to comment. Davis closed his doors with integrity.He paid me every penny he owed me. Estridge,STILL owes me thousands and thousands of dollars. The last few years of my life have been spent working 2 jobs, paying off the suppliers I used to work on Estridge jobs and just struggling to survive. Shame on you Paul...and shame on you IBJ! Maybe you should have contacted the hundreds of vendors that Paul stiffed. I'm sure your "rises from the ashes" spin on reporting would have contained true stories of real people who have struggled to find work and pay of their debts (something that Paul didn't even attempt to do).

ADVERTISEMENT