Driven by higher truck production in North America, Cummins posts record sales, profits
Cummins Inc. reported increases in fourth-quarter sales and profits compared to a year ago, which helped lead to a record year for sales and profits in 2018. Sales were driven by an increased truck production in North America and stronger demand in global construction and power generation markets.
The diesel engines manufacturer said it had fourth-quarter net income of US$579 million, or US$3.63 a share, compared to a loss of US$274 million, or US$1.65 a share, in the year-earlier period when the company was hit by a tax charge.
Fourth quarter sales in North America improved by 17% while international revenues increased by 6% led by growth in Europe, Asia Pacific, and Latin America, but currency negatively impacted revenues by 2% primarily due to a stronger US dollar.
Adjusted per-share earnings were US$3.48, below Wall Street consensus of US$3.82. Sales rose to US$6.126 billion, up 12% from US$5.476 billion from the same quarter in 2017 and above the consensus of US$6.082 billion.
Net income attributable to Cummins for the full year was US$2.1 billion (US$13.15 per diluted share), compared to a net income of US$999 million (US$5.97 per diluted share), or US$1.8 billion ($10.62 per diluted share) excluding the impact of tax legislation.
Revenues for the full year were a record US$23.8 billion, 16% higher than 2017. Revenues in North America increased 19% and international sales grew 12%, with growth in all major regions.
“I want to thank the more than 60,000 global employees who made our 2018 record sales and profits a reality,” said in a statement Chairman and CEO Tom Linebarger.
“2019 is an historic year for Cummins as we celebrate the 100th anniversary of our company, and project another record year of financial results. Our financial strength allows us to continue investing and innovating across our broad portfolio of power solutions to remain a global technology leader for the next 100 years while continuing to return significant capital to investors,” the official added.
Cummins operates manufacturing sites in Ciudad Juarez and San Luis Potosi.