Allison Transmission Holdings Inc. reported net sales of $511 million for its second quarter representing a 5% decrease from the same period in 2014. The company has attributed the decrease in sales to lower demand in the global off-highway and defense end markets.
Adjusted net income for the quarter was $98 million compared to $117 million for the same period in 2014, a decrease of $19 million. The decrease was principally driven by $25 million of premiums and expenses on the tender offer and redemption of long-term debt partially offset by decreased cash interest expense.
Lawrence E. Dewey, chairman, president and CEO of Indianapolis-based Allison Transmission noted: “Our second quarter 2015 results are within the full-year guidance ranges we provided to the market on April 27. Net sales in the North America on-highway end market improved on a year-over-year basis for the eighth consecutive quarter. During the second quarter, Allison experienced the unfavorable impact of lower energy and commodity prices in the global off-highway and service parts, support equipment and other end markets.”
Gross profit for the quarter was $236 million, a decrease of 1% from $239 million for the same period in 2014. Gross margin for the quarter was 46.2%, an increase of 170 basis points from a gross margin of 44.5% for the same period in 2014. The decrease in gross profit from the same period in 2014 was principally driven by decreased sales volume partially offset by price increases on certain products, favorable material costs and lower incentive compensation expense.
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