MAUMEE, Ohio—Dana Inc. saw strong gains in sales despite a drop in net income for 2017.
The firm reported $7.21 billion in sales for the year, a significant increase compared to $5.83 billion in 2016. Dana said strong market demand and conversion of new business wins provided a combined organic increase in sales of about $800 million. Recent acquisitions increased sales by an additional $500 million.
Net income, while still in the black, dropped to $116 million compared to $653 million in 2016. Dana attributed the steep drop to nonrecurring tax and divestiture items for the fourth quarter, which when excluded brought net income up to $297 million compared to $214 million in 2016.
Fourth quarter sales increased by 27 percent to $1.84 billion, but the firm took a net loss of $104 million, down from income of $485 million in 2016. Dana said the firm took a one-time, non-cash charge of $186 million because of the enactment of the U.S. tax reform legislation on Dec. 22. In the fourth quarter of 2016, a tax benefit of $501 million from the release of income tax valuation allowances against U.S. deferred tax assets was recognized.
Excluding those one-time income tax and divestiture impacts, fourth quarter net income came in at $82 million in 2017 and $59 million in 2016, respectively. The firm said those figures mostly reflect the increased operating earnings associated with higher sales, Dana said.
"Thanks to the talents, dedication, and hard work of the more than 30,000 Dana associates, 2017 proved to be a fantastic year as we delivered both organic and inorganic growth," President and CEO James Kamsickas said in a statement.
"Every year since 2015, we increased adjusted EBITDA, and with appreciation and dividends, our shareholders have realized total returns of more than 130 percent during that time. By leveraging the key principles of our enterprise strategy, beginning with a keen focus on our great customers, we have established a strong foundation for our future success."