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Allison lowers outlook after profit slides 17 percent

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A sales slide led Allison Transmission Holdings Inc.’s profit to drop 17 percent in the third quarter.

The Indianapolis-based manufacturer on Monday said it earned $32.2 million, or 17 cents per share, in the quarter.

Revenue fell 14 percent, to $493.5 million, compared with $574 million in the same quarter of 2011.

Allison lowered its sales outlook by a range of 2.5 percent to 3.5 percent for the remainder of 2012 compared to a rise of 1 percent to 3 percent.

The company attributed weaker sales to its North American off-highway sales, which fell 71 percent. The drop largely happened because the company experienced unusually high demand a year earlier as natural gas fracturing went through a boom, Lawrence Dewey, the company’s president, CEO and chairman, told investors.

Allison’s biggest market, North American on-highway sales (commercial semis), fell 5 percent, to $189 million.

Allison shares closed at $19.45 each Friday. The market halted trading Monday because of Hurricane Sandy.

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