Allison (ALSN) Partners SANY for Mining Transmission Solutions
Truck transmission manufacturer Allison Transmission ALSN has forged a strategic partnership with SANY, a leading global heavy equipment manufacturer in the mining and construction sectors. The collaboration positions Allison as a key supplier of transmissions for SANY's lineup of mining vehicles, including the next-generation SANY SKT105 wide body mining dump truck, rigid dump trucks and articulated dump trucks.
Per the terms of the agreement, Allison will supply its family of Off Road Series and Wide Body Dump Series transmissions for integration into SANY's fleet of mining vehicles.
Lu Shiwei, heavy commercial director at SANY, emphasized the importance of this collaboration in bolstering productivity and maneuverability, especially in the face of demanding duty-cycles and harsh mining conditions.
The deal aligns with Allison's broader objective of expanding its market presence in the mining dump truck segment across Africa, Asia and South America. By combining SANY's expertise in heavy equipment manufacturing with Allison's cutting-edge transmission technology, the collaboration promises to deliver unparalleled performance, reliability and productivity to mining operations worldwide. As the demand for high-performance mining vehicles continues to rise, this strategic partnership positions both companies for sustained growth and success in the global mining market.
Last week, Allison secured an $83.3 million contract to supply upgraded and new X1100 transmissions for the U.S. Army's Abrams Main Battle Tank variants and foreign military sales customers. The contract involves delivering these transmissions throughout 2024, aligning with the performance demands of the Abrams tank. The upgrade program integrates new components with existing customer hardware, providing a zero-mileage transmission for the Abrams System Enhancement Package version 3 tanks. This helps achieve significant cost savings.
Allison also announced the ratification of a new agreement with the International United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) Local 933. Covering approximately 1,600 UAW-represented employees in Indianapolis, IN, the four-year agreement, expiring on Nov 14, 2027, signifies a collaborative effort toward employee well-being and the company's future growth.
Allison is set to report its fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for ALSN’s quarterly sales and earnings per share is pegged at $754 million and $1.42, respectively. The company’s close peers include Oshkosh Corp. OSK, Adient ADNT and BorgWarner BWA, among others.
Oshkosh is scheduled to report results on Jan 30. The consensus mark for OSK’s fourth-quarter sales and earnings is pegged at $2.47 billion and $2.17, respectively.
Adient is scheduled to report results on Feb 7. The consensus mark for ADNT’s sales and earnings for the to-be-reported quarter is pegged at $3.7 billion and 57 cents, respectively.
BorgWarner is scheduled to report results on Feb 8. The consensus mark for BWA’s fourth-quarter sales and earnings is pegged at $3.6 billion and 91 cents, respectively.
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