Cummins Reports Strong Earnings in Q3
Cummins reported its third quarter revenue was $4.9 billion, a 15% increase from the third quarter of last year. Stronger demand for on-highway markets and distributor acquisitions in North America was a significant factor in revenue growth.
Cummins reported its third quarter revenue was $4.9 billion, a 15% increase from the third quarter of last year. The company attributed the increase to stronger demand for on-highway markets and distributor acquisitions in North America.
Growth in the components business in Europe and China was also a factor. Net income for the third quarter was $432 million compared to $355 million for the same quarter last year. The increase translated to $2.32 per diluted share.
“We delivered strong earnings and cash flow in the third quarter despite facing mixed conditions in international markets,” said Tom Linebarger, chairman and CEO of Cummins. “Earnings improved in all four of our businesses compared to a year ago.”
The company’s power generation business improved but due to weaker global demand for power generation equipment, Cummins is considering taking cost reducing action in the fourth quarter, says Linebarger.
The company expects that full year revenues will grow between 10% and 12%, slightly above its original forecast of 8% to 11%.
To check out the full earnings report click here.
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