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Allison Transmission Holdings Inc. reported record annual revenue and net income for 2018 while tax-related and interest expense factors led to mixed fourth-quarter results.

For the quarter ended Dec. 31, net income slipped to $147 million, or $1.14 per diluted share, compared with $215 million, or $1.51, a year earlier.

The decrease principally was driven by the 2017 enactment of the U.S. Tax Cuts and Jobs Act, increased product initiatives spending and increased interest expense, according to the Indianapolis-based company.

Quarterly revenue rose 10% to $647 million compared with $588 million a year earlier.

Sales in the North American on-highway market totaled $303 million, up 6% from $287 million in the 2017 period. The gain principally was spurred by higher demand for Allison’s Rugged Duty Series and Highway Series models.

Full-year net income climbed 27% to $639 million, or $4.78, compared with $504 million, or $3.36, a year earlier.

Revenue reached $2.71 billion compared with $2.26 billion a year earlier.

“I am pleased to report that 2018 was a record year for Allison Transmission. Full-year results exceeded our initial net sales guidance ranges across all of our end markets,” Allison CEO David Graziosi said in a release.

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