Cummins Announces Strong First Quarter Results with Revenue Growth of
Cummins Announces Strong First Quarter Results with Revenue Growth of 16 Percent and EBIT Increasing 24 Percent
Company on track for record full-year revenues and EBIT COLUMBUS, Ind.--(BUSINESS WIRE)--May. 1, 2012-- Cummins Inc. (NYSE: CMI) today reported strong sales and profits for the first quarter of 2012.
First quarter revenue of $4.5 billion increased 16 percent from the same quarter in 2011. The increase year-over-year was driven by higher demand in truck, power generation and construction markets in North America and strong growth in global mining markets. Growth in these markets offset weaker demand in the truck market in Brazil, the construction market in China and construction and power generation markets in Europe.
Earnings before interest and taxes (EBIT) was $658 million or 14.7 percent of sales compared to $532 million or 13.8 percent of sales in the first quarter of 2011. EBIT increased by 24 percent, continuing the company's trend of growing earnings faster than sales.
Net income attributable to Cummins in the first quarter of 2012 was $455 million ($2.38 per diluted share) compared to $343 million in the same period a year ago ($1.75 per diluted share).
"Cummins continues to benefit from its geographic diversification and its leadership position in a number of end markets as evidenced by our very strong first quarter results," said Tom Linebarger, Chairman and Chief Executive Officer. "Revenues in North America grew 40 percent in the first quarter, offsetting near-term softness in some emerging markets. I am delighted that through close coordination with our key OEM partners and strong execution from our manufacturing and supply chain teams, we have been able to quickly increase our production in North America to meet strong demand for our products."
Based on the current forecast, Cummins reaffirms that total Company revenues are expected to increase 10 percent in 2012, with EBIT in the range of 14.5 to 15 percent of sales.
Other recent highlights:
Cummins announced at the Mid-America Truck Show in March that it has commenced development of a new 15-liter spark-ignited natural gas engine for the U.S. heavy-duty truck market. Also at the Mid-America Truck Show, Cummins unveiled its product solutions that will allow the Company's engines for U.S. truck customers to meet 2014 fuel efficiency and green house gas standards in 2013. Cummins announced plans to develop a new master site for its operations in Brazil. For the fifth consecutive year, Cummins has been named one of the world's most ethical companies by The Ethisphere Institute. First quarter detail (all comparisons to same period in 2011)
Sales - $2.9 billion, up 20 percent Segment EBIT - $381 million, or 13.3 percent of sales, compared to $290 million or 12.1 percent of sales Improved demand in North American heavy duty truck, medium duty truck and light duty truck and construction markets offsetting lower sales to the China construction and Brazilian truck markets Strong demand for mining engines globally Components
Sales - $1.1 billion, an increase of 19 percent Segment EBIT - $143 million, or 13.0 percent of sales, compared to $105 million or 11.4 percent of sales Record quarter driven by increased demand in North America and Brazil more than offsetting lower demand in Europe and China Power Generation
Sales - $780 million, down 2 percent Segment EBIT - $76 million, or 9.7 percent of sales, compared to $89 million or 11.2 percent of sales Improved demand in North America and Brazil offsetting lower revenues in the Middle East and Europe Distribution
Sales - $775 million, up 21 percent Segment EBIT - $94 million, or 12.1 percent of sales, compared to $89 million or 13.9 percent of sales Revenue increase driven by