Allison Transmission said sales for the fourth quarter rose 25% to $588m.
Net income was $215m versus $61m a year ago.
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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.
Guidance
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%.
