Columbus-based Cummins Inc. (NYSE: CMI) is reporting second quarter net income of $276 million, down from $675 million during the same period last year. The manufacturer says the drop is due in part to lower demand caused by COVID-19-related shutdowns and weak economic activity.
Cummins is also reporting a 38% decrease in revenues to $3.9 billion. North American sales also dropped 48%, which Chief Executive Officer Tom Linebarger calls the “most severe decline in quarterly sales in our history.”
However, Linebarger says despite the challenges in the second quarter, the company delivered “solid profitability.”
“Our people demonstrated remarkable flexibility as did our operations and supply chain,” said Linebarger. “A pronounced example of our organization’s agility in this challenging period was our ramp up in China, where many of our facilities went from complete shut down in February and March to producing record volumes in the second quarter.”
Linebarger says while customer demand improved in some regions toward the end of the quarter, the company is still facing “significant uncertainty” regarding the pace of its recovery.
Cummins says it expects third quarter revenues to improve from second quarter levels, however due to the uncertainty surrounding the pandemic, the company is not providing full-year revenue or profitability guidance for 2020.
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