Cummins Profit Jumps in Q4
Columbus-based Cummins Inc. (NYSE: CMI) is reporting fourth quarter net income of $378 million, up from $161 million during the same period the previous year. The company says, despite the increase, fourth quarter revenues were down 6 percent due, in part, to lower commercial truck production in North America.
Cummins says weaker global demand for industrial engines and power generation equipment also contributed to the revenue decline.
"Despite weak conditions in a number of our largest markets, Cummins delivered fourth quarter results that were a little better than expected due to our strong market share in on-highway markets in North America and the benefits of our cost reduction work," said Tom Linebarger, chief executive officer of Cummins. "We made significant progress in a number of our key initiatives in 2016, including executing our restructuring actions, completing the acquisition of our distributors in North America and continuing to invest in new products, all of which help position the Company for profitable growth when markets improve."
The company is also reporting full-year net income of $1.39 billion in 2016, down slightly from $1.4 billion the previous year. Full-year revenues were down 8 percent compared to 2015.
Cummins ended the year with the completion of its $30 million global distribution business headquarters in downtown Indianapolis. The company cut the ribbon on the new facility just after the new year.