Allison Transmission Holdings (ALSN) has reported 72.92 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $83 million, or $0.52 a share in the quarter, compared with $48 million, or $0.28 a share for the same period last year. Revenue during the quarter grew 8.01 percent to $499 million from $462 million in the previous year period. Gross margin for the quarter expanded 376 basis points over the previous year period to 50.30 percent. Total expenses were 70.14 percent of quarterly revenues, down from 75.97 percent for the same period last year. This has led to an improvement of 583 basis points in operating margin to 29.86 percent.
Operating income for the quarter was $149 million, compared with $111 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $192 million compared with $162 million in the prior year period. At the same time, adjusted EBITDA margin improved 341 basis points in the quarter to 38.48 percent from 35.06 percent in the last year period.
Lawrence E. Dewey, chairman and chief executive officer of Allison Transmission commented, “Allisons first quarter 2017 results exceeded the full year guidance ranges we provided to the market on February 6 principally driven by stronger than anticipated demand for North America service parts. Allison demonstrated solid operating margins and free cash flow while executing its well-defined approach to capital structure and allocation. During the first quarter, we settled $415 million of share repurchases and paid a dividend of $0.15 per share. Given first quarter 2017 results and current end markets conditions we are updating our full year net sales guidance to an increase in the range of 7.5 to 10.5 percent."
Allison Transmission Holdings expects revenue to grow in the range of 7.50 percent to 10.50 percent for the financial year 2017.
Operating cash flow declinesAllison Transmission Holdings has generated cash of $111 million from operating activities during the quarter, down 5.93 percent or $ 7 million, when compared with the last year period. The company has spent $8 million cash to meet investing activities during the quarter as against cash outgo of $6 million in the last year period.
The company has spent $189 million cash to carry out financing activities during the quarter as against cash outgo of $65 million in the last year period.
Cash and cash equivalents stood at $120 million as on Mar. 31, 2017, down 59.87 percent or $179 million from $299 million on Mar. 31, 2016.
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