IBJNews

Allison Transmission profits tripled in 2011

Back to TopCommentsE-mailPrintBookmark and Share

Interest in Allison Transmission’s initial public stock offering may shift to a higher gear with the Speedway manufacturer disclosing this month that it more than tripled profits in 2011.

Profit of $103 million last year compares with a profit of $29.6 million in 2010 and a loss of $323.9 million in 2009, according to a document Allison filed Feb. 17 with the Securities and Exchange Commission as part of its planned IPO.

Allison cited stronger demand for global on- and off-highway transmissions and parts.

Sales last year rose 12 percent, to $2.2 billion.

In the short term, analysts say, truck engine and transmission companies stand to gain as the economy rebounds and fleets that deferred truck purchases start buying again.

“These are companies coming back pretty strong, particularly in North America,” said Mark Foster, chief investment officer at Kirr Marbach & Co. in Columbus, Ind.
Longer term, Allison should see growth in markets in China and India, where automatic truck transmissions are relatively rare.

Given the higher price of automatic transmissions, however, it remains to be seen whether Allison will benefit in some price-sensitive markets in other countries, Foster said.

Allison cites Frost & Sullivan estimates that, in 2010, fully automatic transmissions represented 37.8 percent of transmissions sold in the North American medium- and heavy-duty commercial vehicle markets, compared with 6.1 percent in Western Europe. By 2017, they are expected to grow to 41.8 percent and 10.9 percent, respectively.

Dragging down Allison's results last year were military sales, which fell 14 percent.

The company has nearly 2,800 employees, most of them in the Indianapolis area.  However, in 2010, Allison opened a plant in Chennai, India, and has teamed with GM Powertrain on a plant in Hungary.

General Motors spun off Allison in 2007 for $5.6 billion. Holding a controlling interest are the private-equity groups Onex and Carlyle Group.

Allison officials declined to comment on last year’s financial performance, citing restrictions involving the pending IPO.  The company disclosed previously that it hopes to raise $750 million by going public.

Allison dominates the U.S. market in the sale of automatic transmissions in categories such as firetrucks, school buses and garbage trucks.

“We believe the anticipated increase in global commercial vehicle production, together with pent-up demand in the North American market that resulted from the deferral of purchases during the economic downturn, will support our continued growth and result in increased net sales,” the company said in the recent filing.

ADVERTISEMENT

  • ALLISON
    Here it is
  • Congratulations
    Congratulations to the management and workforce at Allison Transmission, for a great 2011 result. I am not totally excited about the plants in India and Hungary, but I accept the fact that growth will need to come from foreign sales. In order to be competitive in foreign markets, it may require a company supply foreign manufacturers from a plant that is closer to the customer. I believe that all US Manufacturing Companies that increase employment by more than 10% each fiscal year, be given a 50% reduction in the firms Corporate Federal Tax Bill for that Fiscal Year. Since I am not in a position to actually impact that decision, I recommend that everyone suggest such a change in the Tax Code to their respective Congressional Representative. Let's reward companies that put people back to work.

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. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT