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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAllison Transmission Holdings Inc. on Monday reported a jump in profit in the third quarter despite sliding revenue.
The Indianapolis-based manufacturer of transmissions and propulsion systems earned $44.5 million, or 24 cents per share, in the latest period, up from $32.2 million, or 17 cents per share, in the same quarter last year.
Revenue dropped 6 percent from a year ago, to $466 million.
The profit just missed expectations of nine analysts polled by Thomson Reuters, but the revenue was well off predictions. Analysts expected the company to earn 25 cents per share and bring in revenue of $493.97 million.
Company officials said reductions in U.S. defense spending and lower demand from the North American hydraulic fracturing market led to slower sales. Allison also cited fewer sales of hybrid-propulsion systems for transit buses.
North American on-highway sales were a bright spot, rising 12 percent, to $212 million.
The company slightly reduced sales guidance for the full year to a range of $1.92 billion to $1.935 billion, down from a previous guidance range of $1.92 billion to $1.96 billion.
Allison shares fell 1.5 percent Monday before earnings were announced, closing at $25.14 each.
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