Allison Transmission Holdings Inc., the maker of transmissions for heavy trucks, buses and the military, fell the most since becoming a public company after reporting lower preliminary sales than analysts had estimated.
The shares tumbled 6.8 percent to $22.17 at the close in New York, the biggest one-day drop since it sold shares to the public 13 months ago. The Indianapolis-based company has gained 8.6 percent this year.
Sales in the three months ended March 31 were $455 million to $460 million, the company said in a preliminary statement of earnings. The average of seven estimates in a Bloomberg survey was for sales of $471.7 million.
Allison said the results “reflect considerably lower demand” in the hydraulic fracturing market in North America and lower defense sales. Allison received $305 million of its $2.14 billion in revenue last year from military customers.
The company also plans to double its quarterly dividend to 12 cents a share on May 31 to shareholders of record as of May 17. Separately, Allison said it is selling 22 million shares on behalf of shareholders including Carlyle Group and Onex Corp., the two investment firms that bought the company from the predecessor of General Motors Co. in 2007 and took it public in March 2012.