Indianapolis-based Allison Transmission Holdings Inc. reported full-year net income of $215 million in 2016, up from $182 million the previous year. Despite the increase, the company saw a drop in net sales for the year.

Inside INdiana Business reported that fourth-quarter net income rose significantly to $61.2 million, up from $13 million during the same period in 2015. Net sales for the fourth quarter decreased 2%.

“Allison’s fourth quarter 2016 results exceeded the full year guidance ranges we provided to the market on October 24 principally due to stronger than anticipated demand conditions in North America off-highway service parts and global on-highway products,” said Lawrence Dewey, CEO of Allison. “Allison demonstrated solid operating margins and free cash flow while executing its well-defined approach to capital structure and allocation. During the fourth quarter, we settled $87 million of share repurchases and paid a dividend of $0.15 per share.”

The earnings report follows the company’s announcement in December that Dewey will retire in 2018. Allison did not give a time frame for the search for Dewey’s successor.

To view the full report click here.