Allison Transmission Holdings, the Indianapolis-based provider of fully automatic transmissions for heavy-duty trucks, reported fourth-quarter and full-year results.
The company saw fourth-quarter net income of $215 million, driven primarily by a one-time tax benefit of $155 million generated by the enactment of the U.S. Tax Cuts and Jobs Act in December. Without the benefit net income at Allison was $65 million, compared with $61 million in the fourth quarter a year ago. Diluted earnings per share were $1.51, compared with 36 cents a year ago.
Net sales for the quarter were $588 million, a rise of 25% from a year ago, and 2% higher than the analyst consensus estimate.
Chairman and CEO Lawrence Dewey said the company “achieved record levels of net sales, gross margin and net cash provided by operating activities.”
The North America On-Highway division, the company’s largest unit, saw net sales of $270 million in the quarter, a 24% rise from $217 million a year ago. Allison said its popular Rugged Duty series models sent sales higher. Sales at the Outside North America On-Highway division came in at $98 million, up 18% from a year ago, due to better sales in Asia, Europe and South America. The Service Parts unit saw sales of $139 million, up 29% from $108 million, while sales at the Defense unit declined 32% to $25 million.
Allison’s 2017 full-year net income was $504 million, including the tax benefit, and up from $215 million in 2016. Net sales were $2.3 billion, up 23% from the previous year. Earnings per share for the year were $3.36, compared with $1.27.
Allison provided initial guidance for 2018, expecting a rise in net sales of 7% in its North America On-Highway division, and of 6% in the Outside North America On-Highway unit.