Cummins Profit Decreases, Revenue Rises
Columbus-based Cummins Inc. (NYSE: CMI) is reporting first quarter net income of $325 million, compared to $396 million compared to the same quarter last year. Despite the decrease, the global engine manufacturer says revenue and sales were up, helping lead Cummins executives to boost its full-year revenue outlook.
Chief Executive Officer Tom Linebarger says "Improving demand in a number of the Company’s core markets, combined with our strong global market share and the success of new products aimed at lowering emissions, resulted in sales growth of 21 percent in the first quarter. Cummins delivered solid operating performance in the first quarter led by strong incremental margins in the Power Systems segment. As a result of rising demand and continued benefits from cost reduction initiatives, we have raised our full year outlook for sales and EBITDA."
Quarterly revenues, North American sales and sales in Europe, Latin America, China and Indian all jumped by 20 percent or more, compared to the same quarter a year ago, Cummins says. Discrete charges primarily related to federal tax reform totaled $78 million during the quarter.
The company says its 2018 full-year revenue totals are now expected to increase between 10 and 14 percent, up from the previous 4 to 8 percent guidance. You can view the full Q1 report by clicking here.