Transmission manufacturer Allison has recorded a staggering Q3 profit of US$824 million thanks to its overall strong performance in the Asian market.
The North American On-Highway net sales amounted to a total of US$457 million, a US$81 million increase on the same period in 2023.
Outside North America On-Highway net sales amounted to US$126 million, a year-on-year increase of US$8 million.
Much of that increase in outside North America net sales has come due to a dramatic increase for the company’s products in Asia and price increases on certain products, however that gain was partially offset by poorer European performance.
The highest gross profit experienced by Allison Transmission’s worldwide operations saw its adjusted EBITDA rise from US$267 million in Q3 2023 to US$305 million this year.
The strong performance has seen Allison Transmission raise its full year 2024 revenue, earnings and cash flow guidance according to Chair and Chief Executive Officer David S. Graziosi.
“Demonstrated through our third quarter 2024 results, unprecedented demand for Class 8 vocational vehicles in our North America On-Highway end market continues to drive record performance for our business,” he says.
“Third quarter net sales increased 12 per cent year over year, surpassed by an even stronger EPS, up 29 per cent year over year to a quarterly record of US$2.27 per share.
“Based on the ongoing strength of our North American On-Highway end market and a favourable outlook for the remainder of the year, we are pleased to raise our full year 2024 revenue, earnings and cash flow guidance.”
Allison Transmission now expects 2024 net sales in the range of $3.14 to $3.22 billion, net income in the range of $675 to $725 million, and adjusted free cash flow in the range of $605 to $655 million.
The company has a presence in over 150 countries and has over 1600 independent dealer and distributor locations worldwide.
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