Allison Transmission Holdings Inc. on reported higher-than-expected revenue and profit in the third quarter.
The Indianapolis-based manufacturer had sales of $553 million in the quarter ended Sept. 30, a 19% increase over the same period of 2013. Profit rose to $68.8 million, or 38 cents per share, up from $44.5 million, or 24 cents per share, in last year’s third quarter.
Analysts had expected earnings per share of 30 cents on revenue of $501.6 million.
The performance exceeded the guidance the company issued July 23, prompting Allison to raise its full-year sales estimates. Allison now expects sales to grow in the range of 7.5 percent to 9 percent over last year, up from prior guidance of 4% to 6% growth.
Allison said sales increases were driven by the recovering North America on-highway and off-highway markets, and higher demand in service and support.
North American off-highway sales rose 21% in the quarter, to $256. Off-highway sales jumped 233 percent, to $30 million. Service and support sales rose 28%, to $118 million. Transit bus sales increased 53 percent, to 23 million.
The only segment that slipped was defense sales, which dropped 33%, to $35 million.
Allison is the world’s largest manufacturer of automatic transmissions for medium- and heavy-duty commercial vehicles.