This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Allison 4Q Profit Down On Lower Natural Gas Demand

INDIANAPOLIS (AP) â¿¿ Allison Transmission Holdings Inc. said Tuesday its fourth-quarter net income tumbled 75 percent, pulled down by expenses related to a new labor contract and lower demand from the North American natural gas industry.

The Indianapolis-based company, which makes automatic transmissions for commercial, military and transit vehicles, earned $11.2 million, or 6 cents per share, in the last three months of 2012. That was down from $44.5 million, or 24 cents per share, in the same quarter in 2011.

Allison said the recent quarter's results included $7 million in costs related to a new labor agreement and a $9 million product warranty charge.

Excluding those and other one-time items, the company posted an adjusted profit of $46 million for the recent quarter, but didn't say how much it earned per share.

Revenue fell 6 percent to $487 million from $516.1 million.

Analysts, on average, expected adjusted net income of $45.7 million, on $440.3 million in revenue, according to FactSet.

Allison said its on-highway sales, which include transmissions for busses, motorhomes and other vehicles, rose 7 percent to $188 million. But North American off-highway sales plunged 76 percent to $17 million, hurt by lower demand for equipment used in hydraulic fracturing stemming from a drop in natural gas prices.

Off-highway sales outside of North American jumped 58 percent to $30 million, on strong demand from energy and mining companies, the company said.

For the full year 2012, Allison earned $514.2 million, or $2.76 per share, up from $103 million, or 56 cents per share, in 2011. Revenue fell to $2.14 billion from $2.16 billion.

The company said it expects its 2013 sales to fall between 6 percent and 8 percent from 2012 levels, citing continued uncertainty in many of the markets it serves. Based on the company's 2012 results, the guidance implies 2013 revenue of between $1.97 billion and $2.01 billion.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,262.56 +89.32 0.55%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs