Allison Transmission Holdings Inc. shifted into a higher gear in its second quarter, revving profit 13 percent over the same quarter last year, the firm reported late Wednesday.
The Indianapolis-based manufacturer of transmissions and propulsion systems drove in $536.1 million in revenue for the quarter, a 4.7 percent increase from $512.1 million from the same quarter in 2013.
Profit for the quarter reached $57.2 million, compared to $50.5 million in the same period in 2013. Earnings per share for the quarter were 31 cents, a boost from 26 cents last year.
Allison shares slipped 1 percent in mid-morning trading on Thursday, to $31.82 per share.
Allison’s products are used by hundreds of vehicle manufacturers in market sectors including bus, refuse, fire, construction, distribution and military uses.
CEO Lawrence Dewey attributed the firm’s stronger sales to a recovery in the markets for on- and off-highway vehicles in North America, tempered by weakness in markets outside the region.
Strongest sales increases came in the North American off-highway market, which rocketed 188 percent to $23 million in revenue on increased demand for hydraulic fracturing equipment, and the continent’s on-highway market, jumping 13 percent to $243 million, due to higher demand for rugged-duty and bus/shuttle products.
Allison’s service parts and support business also posted impressive sales gains, rising 16 percent to $107 million.
Allison said that it would raise its guidance for full-year revenue by 4 to 6 percent, based on anticipated improvement in the North American markets. It declined to provide specific projections for the third quarter but said it did expect revenue to be higher than in the third quarter of 2013.