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Allison Transmission Holdings Inc. reported second-quarter net income and revenue were sharply lower after the novel coronavirus pandemic upended supply chains and demand.
For the period ended June 30, net income plunged to $23 million, or 20 cents per diluted share, on revenue of $377 million compared with $181 million, or $1.46, on revenue of $737 million a year earlier.
“Our second-quarter results reflect the pandemic’s significant impact on global supply chains and customer demand,” CEO David Graziosi said during the recent earnings call. “Despite these ongoing disruptions, all of Allison’s global facilities are currently producing transmissions and components, and the majority of our manufacturing operations have run continuously throughout 2020. To date, we have achieved uninterrupted delivery of our products and continued to generate earnings and positive cash flow.”
He continued: “We’re staying very close to original equipment manufacturers in a very targeted way. We also have a number of different internal, external milestones targeted for early next year that we’re working toward relative to alternate propulsions.”
The company reaffirmed its full-year 2020 capital expenditure target of 35% below 2019. It noted, too, its recently completed Vehicle Environmental Test Center already is being leveraged to accelerate the development of its next-generation propulsion solutions, including Allison’s portfolio of electric propulsion systems.
Revenue at its largest segment, North American on-highway, fell 59% to $164 million compared with $398 million in the 2019 period. Graziosi on Aug. 5