INDIANAPOLIS - GLS Germany has achieved a milestone by completing 30,000 kilometers of deliveries using a Hyundai (OTC:HYMTF) Xcient hydrogen fuel cell truck equipped with an Allison 4000 Series™ fully automatic transmission. This development marks a significant step in the company's efforts to explore environmentally friendly propulsion technologies.
The Hyundai Xcient Fuel Cell 6x2 truck, which began its trial in the greater Cologne area since late 2023, has successfully delivered over 100,000 packages without experiencing any operational issues. Since March 2024, the truck has expanded its reach to include long-distance trips between Cologne and Mannheim. The vehicle, which can carry up to 1,300 parcels per trip, is powered by a 180-kilowatt hydrogen fuel cell system. It also features a steered rear axle for improved maneuverability.
Gero Liebig, Regional Manager at GLS, praised the truck's agility and precision, noting the quietness of the hydrogen fuel cell system which allows for flexible delivery schedules, including at night in populated areas. Allison Transmission 's patented torque converter is credited with enhancing the truck's performance by multiplying the drive motor's torque, leading to a reduction in motor size, increased range, and efficiency, as well as a decrease in overall vehicle costs.
Heidi Schutte, Vice President of EMEA, APAC, and South America Sales at Allison Transmission, highlighted the company's commitment to providing diverse propulsion solutions, from conventional to electric hybrid and fully electric systems. Allison Transmission's role in this trial underscores its strategy to support sustainable transportation solutions across various fuel types.
Allison Transmission, headquartered in Indianapolis, Indiana, is recognized as a global leader in designing and manufacturing propulsion solutions for commercial and defense vehicles. The company has a widespread presence in over 150 countries, with manufacturing facilities in the USA, Hungary, and India, and approximately 1,600 independent distributor and dealer locations worldwide.
GLS Group, one of Europe's largest independent parcel service providers, continues to prioritize sustainability in its operations. With a record turnover of 5.6 billion euros in the 2023/24 financial year and operations across approximately 40 countries, GLS's use of the Hyundai hydrogen fuel cell truck represents its ongoing commitment to reducing its environmental footprint. This information is based on a press release statement.
In other recent news, Allison Transmission Holdings (NYSE:ALSN) Inc. announced a quarterly cash dividend of $0.25 per share for the third quarter of 2024. The company also reported a record-breaking revenue of $816 million in the second quarter of 2024, with a net income of $187 million and a gross profit of $394 million. Following these strong results, Baird raised its price target for Allison Transmission from $87 to $90, maintaining a neutral rating.
Further developments include Allison Transmission's projection of net sales for the full year to be between $3,090 million and $3,170 million, with net income expected to fall between $650 million and $700 million. The company's performance was significantly bolstered by robust North American On-Highway sales, driven by notable Class 8 vocational vehicle demand.
According to Baird, despite the optimistic near-term outlook, a cautious approach is being taken towards Allison Transmission's long-term prospects, considering the cyclical nature of the industry. The firm is keen to better understand the risks and rewards for the year 2025 before projecting further potential gains. These are the latest developments in the recent news about Allison Transmission.
InvestingPro Insights
The successful integration of Allison Transmission's technology in Hyundai's hydrogen fuel cell truck not only marks a significant advancement in sustainable transportation but also reflects positively on Allison Transmission's business performance. With a market capitalization of $7.82 billion and robust financial metrics, the company stands out in its sector.
InvestingPro data shows that Allison Transmission (ALSN) has a Gross Profit Margin of 48.17% over the last twelve months as of Q2 2024, indicating the company's efficiency in managing its production costs relative to its sales. This is complemented by an Operating Income Margin of 30.97%, showcasing its ability to translate sales into profit effectively.
Moreover, the company's P/E Ratio is currently at 11.65, with a slight adjustment to 11.08 over the last twelve months as of Q2 2024, suggesting that the stock may be trading at a reasonable price relative to its earnings. An InvestingPro Tip highlights that Allison Transmission has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company's impressive return of 55.17% over the past year speaks to its strong market performance.
For investors interested in deeper analysis, there are 15 additional InvestingPro Tips available, including insights on earnings revisions and profitability predictions. These can be accessed for Allison Transmission at InvestingPro, offering valuable information for making informed investment decisions.
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