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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 shrinking revenue and profit in the third quarter, but the results still topped analyst expectations.
The Indianapolis-based automatic transmission maker turned a profit of $46.5 million, or 27 cents per share, in the quarter, down 32 percent from $68.8 million, or 38 cents per share, in the third quarter of 2014.
Earnings adjusted for non-recurring costs and amortization costs were 71 cents per share, topping the average estimate of 66 cents per share by seven analysts surveyed by Zacks Investment Research..
Allison reported revenue of $493 million in the period, down 11 percent from the same period of 2014. Revenue topped the estimate of $490.1 million by six analysts surveyed by Zacks.
Company officials said the decrease in sales was principally driven by lower demand in the global off-highway end market, which was partially offset by higher demand in the North America on-highway end market and price increases on certain products.
Allison shares rose 1.2 percent Monday, to $28.74 per share, before earnings were announced. The stock has fallen 15 percent since the beginning of the year.
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