Driveline supplier Dana Inc. reported $100 million in net income for the fourth quarter Friday, compared with a $104 million loss a year earlier, as the company overcame increased commodity costs in part with higher end-market demand across its four business units.
Dana also benefited from far lower income tax expenses.
In the quarter, Dana said revenue improved 7.4 percent to $1.97 billion while cash generation increased 71 percent to $331 million across its light-vehicle, commercial-vehicle, off-highway and power technologies business units.
Income tax expenses dropped to $3 million compared with $189 million during the same quarter last year.
For the year, Dana reported what it said were its highest annual sales, profits and profit margin since it emerged from bankruptcy protection in 2008.
The Maumee, Ohio, company said its revenue in 2018 was $8.14 billion, up 13 percent from a year earlier. Dana also said net income surged to $427 million from $111 million in 2017, with a profit margin of 11.8 percent for the year. Income tax expenses fell to $78 million for the year compared with $283 million in 2017.
The company issued guidance for 2019, saying it expected to generate “up to $1 billion in additional sales growth” for the third consecutive year, and expects to close its acquisition of Oerlikon Drive Systems by March 1.
Dana shares have gained momentum following the report, first issued on Friday, and on Tuesday rose 4.9 percent to close at $20.05.
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