Dana Inc. saw a decrease in its fourth-quarter net income, largely due to elevated costs that reduced profit and pressured company margins.
The axles and transmissions supplier said said Thursday that net income for the quarter dropped 15 percent to $85 million.
The supplier said sales in the fourth quarter gained 1 percent to $1.99 billion. The company said the slight increase is attributable to recent acquisitions and backlog conversions.
Last year, the supplier completed its acquisition of Canadian company Nordresa Motors Inc. in a move to grow its electrified drivetrain capabilities. Dana also completed its acquisition of drive systems business Oerlikon, the largest deal in company history, last year.
Adjusted earnings before interest, taxes, depreciation and amortization for the fourth quarter also increased 1 percent to $226 million.
Adjusted free cash flow fell more than 9 percent to $218 million, the company said, largely due to higher capital expenditures to support new programs.
Dana said currency translation was a headwind to sales, while recovery of higher commodity prices benefited sales.
For the full year, Dana sales increased 6 percent to $8.6 billion.
Net income fell 49 percent to $226 million. The company said this included one-time charges of $259 million for discretionary pension transfers.
Adjusted operating income for the full year stayed comparable to the previous year, at $1.02 billion.
"Despite expected softer demand in our heavy-vehicle markets, we continue to successfully manage through this cycle and execute our strategic plan," CFO Jonathan Collins said in a statement. "We have positioned the company for significant adjusted free cash flow growth this year, and our strong sales backlog and multi-market focus will buffer end-market demand."
Shares of Dana ratcheted up 6.2 percent to close at $17.91 on Thursday.
Dana, of Maumee, Ohio, ranks No. 33 on the Automotive News list of top 100 global suppliers with parts sales to automakers of $8.14 billion in its fiscal 2018.
