MAUMEE, Ohio—Dana Inc. posted what it said was a record year in sales in addition to significant growth in net income.
The firm's full-year sales increased 13 percent to $8.14 billion, while its fourth-quarter sales improved by 7 percent to $1.97 billion.
Net income also significantly increased in both periods. For the full-year, Dana recorded $440 million, compared to the $116 million in 2017. In the fourth quarter of 2018, the firm posted $106 million in net income, compared to a $110 million loss in the fourth quarter of 2017.
"Dana achieved record annual sales, profit, and profit margin performance in 2018, and we increased adjusted free cash flow by more than 50 percent," James Kamsickas, Dana CEO and president, said in a statement. "At the same time, we organically and inorganically established complete E-Propulsion capability to support all our end markets. Through the outstanding efforts and commitment of our associates and the support of our customers, we have achieved exceptional results and expect to continue this strong trajectory in 2019, including increasing sales by nearly one billion dollars for the third consecutive year."
Dana attributed the growth for the year to stronger end-market demand, which it said more than offset the margin headwind attributable to the effects of higher raw material prices and the associated material recovery reflected in sales.
For the quarter, Dana attributed the significant increase in net income to a $186 million charge related to the enactment of U.S. tax reform in the fourth quarter of 2017. Its sales increased thanks to higher end-market demand in all business units, conversion of sales backlog and favorable currency translation.