Columbus-based Cummins Inc. (NYSE: CMI) is reporting second quarter net income of $675 million, compared to $545 million during the same period last year. The company says North American sales hit a new record, up seven percent.
The manufacturer saw a one percent increase in quarterly revenue to $6.2 billion, driven by increased truck production in North America and stronger demand in North American power generation markets. International revenues decreased by 6 percent with lower truck demand in China, Europe, Brazil, and India.
“We achieved record revenues, EBITDA, and operating cash flow in the first half of 2019, extending our track record of raising performance cycle over cycle,” said Chairman and CEO Tom Linebarger.
Looking ahead to the rest of 2019, Cummins expects revenues to be flat, driven by continuing reduced truck demand in international markets. “While we do expect to see a moderation in demand in the second half of the year, our financial strength combined with our diversified geographic and end market exposure will enable us to generate strong profits, continue to invest in future growth, and return cash to shareholders,” said Linebarger.
Also during the quarter, Cummins entered into a definitive agreement to acquire the majority of shares of fuel cell systems provider Hydrogenics Corporation, a Canadian-based company.
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