Cummins revenues, profits fall in 2016
Diesel engines and solutions manufacturer Cummins reported revenues for the full year 2016 of US$ 17.5 billion, 8% lower than 2015. Revenues in North America decreased 12% and international sales decreased 2% mainly due to foreign currency movements.
Earnings before taxes for the year was US$ 2.0 billion or 11.4% of sales, compared to US$ 2.1 billion or 10.9% of sales in 2015, according to the company’s full year 2016 results.
“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 Chairman and CEO.
“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,” Linebarger added.
The company cited in its report three key manufacturing highlights achieved during 2016:
- Cummins partnered with Peterbilt to develop and demonstrate technologies under the U.S. Department of Energy’s (DOE) SuperTruck II program.
- The company was recognized with the 2016 United States Overall Best Heavy-Duty Truck Engine Supplier Leadership Award by Frost and Sullivan.
- The Environmental Protection Agency (EPA) certified Cummins’ full range of heavy- and medium-duty diesel engines for the 2017 Greenhouse Gas Emission Standards.
Cummins operates manufacturing sites in Ciudad Juarez and San Luis Potosi.