Indianapolis-based Allison Transmission Inc. is reporting second-quarter net income of $181 million, up from $174 million during the same period last year. The manufacturer says it also hit record net sales of $737 million, a 4% increase over second quarter 2018.
Allison said record sales were driven largely by higher demand in the North America on-highway and foreign off-highway end markets. Chief Executive Officer David Graziosi said the results exceeded the company’s expectations and guidance ranges.
“Furthermore, Allison continues its well-defined approach to capital structure and allocation, settling $235 million of share repurchases and paying a dividend of 15 cents per share during the second quarter,” Graziosi said in a news release. “In May, the board of directors approved a $1 billion increase to the existing stock repurchase authorization, resulting in $1.16 billion of remaining authorized share repurchase capacity as of the end of the quarter.”
Graziosi noted that, as a result of the second quarter earnings and current end market conditions, the company is raising its full-year 2019 guidance for net sales and net income, among other measurements.
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