Boston, MA 04/16/2013 (wallstreetpr) – The heavy trucks transmission-maker Allison Transmission Holdings Inc (NYSE:ALSN) (Closed: $22.17, Down by 6.81%) dipped the most in over seven weeks post reports of lower than analyst estimated sales. The company manufactures transmissions that are used in buses and military trucks. Through April 12, the Indianapolis-based company had gained 17 percent. In a preliminary earnings statement, Allison said that in the quarter that ended March, its sales stood at $455 million-$460 million. The average analyst sales estimate was $471.7 million. Allison said that there had been a dip in defense sales. In addition to this there had been a decrease in the North American hydraulic fracturing market as well.
Military customers drop
Last year a large chunk of the company’s revenue had been attributed to its military customers and $305 million out of its $2.14 billion revenue had come from this sector. The company also announced that on May 31, its quarterly dividend will be doubled to 12 percent per share to all shareholders on record as of 17 May. In a separate statement Allison announced that it will be selling 22 million of its shares on behalf of its shareholders including ONEX Corporation (TSE:OCX) (Closed: $48.48, Down by 1.0%) and Carlyle Group (NASDAQ:CG) (Closed: $31.61, Down by 1.92%). In 2007, these two investment firms had bought-out the company from General Motor’s predecessor and had subsequently taken it public in 2012 March.
The fully-automatic transmissions that Allison Transmission Holdings manufactures are used in numerous heavy and medium-duty commercial vehicles. They are also used in hybrid propulsion systems installed in transit buses as well as military vehicles that the United States military uses. Its transmission is sold globally too.