Engine manufacturer Cummins Inc. Tuesday reported its first quarter profit increased 14% from the same time a year ago, totaling $387 million, or $2.14 per diluted share.
Revenue totaled $4.7 billion, a 7% increase from the same quarter in 2014.
The gains were driven by stronger demand in on-highway markets and distributor acquisitions in North America, according to the company. Currency negatively impacted revenues by 3% compared to last year, primarily due to a stronger U.S. dollar.
Revenues in North America increased 17%, while international sales declined by 6%. Within international markets, lower revenues in Europe and Brazil more than offset growth in China.
"Record profitability in our components segment, execution of our distributor acquisition strategy, the successful launch of new products in China and improved results in our Power Generation business all contributed to earnings growth in the first quarter," said Chairman and CEO Tom Linebarger. " Strong performance in these areas more than offset the impact of weak demand in a number of international markets.
"We expect profitability for the remainder of the year to increase from first quarter levels as revenues improve and we capture more benefits from cost reduction activities."
Based on the current forecast, Cummins expects full year 2015 revenues to grow between 2% and 4%.
In the company’s engine segment, sales totaled $2.6 billion, up 1% from the 2014 first quarter. Increased demand in on-highway markets in North America and power generation offset weaker demand in construction, marine and mining markets, according to the company.