Allison Transmission said sales for the fourth quarter rose 25% to $588m.
Net income was $215m versus $61m a year ago.
Go deeper with GlobalData
Adjusted EBITDA was $210m, or 35.7% of sales, compared to $158m (33.8%).
Chairman and CEO Lawrence Dewey said: “2017 was a noteworthy year. Full year results exceeded our initial sales guidance ranges across all of our end markets.”
Gross profit for the quarter rose 32% to $288m while gross margin was 49% versus 46.4%.
The rise in net income was due mainly to tax cuts, increased gross profit and lower incentive compensation expenses partially offset by a loss associated with the impairment of long-lived assets, increased technology-related investment expense, unfavourable product warranty adjustments, increased product initiatives spending, increased interest expense and increased commercial activities spending.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGuidance
Allison expects 2018 sales to be in the range of up 3% to 7% compared to 2017 and an adjusted EBITDA margin in the range of 37.5% to 39.5%.
