Engine manufacturer Cummins reported fourth quarter revenue of $4.6 billion, a 7 percent increase compared to the fourth quarter of 2012. The year-over-year increase was driven by higher revenues in North America, China and Brazil, partially offset by weaker sales in Mexico, India and Australia. EBIT was $432 million compared to $440 million in the fourth quarter of 2012.
Revenues for the full year were $17.3 billion, flat compared to 2012. Revenues in North America increased 3 percent but were offset by a 4-percent drop internationally.
EBIT for the full year was $2.16 billion, or 12.5 percent of sales, compared to $2.35 billion or 13.6 percent of sales in 2012.
“We faced weak demand in important regions and end markets in 2013,” said Tom Linebarger, chairman and CEO. “Revenues for the year ended flat with 2012 as strong growth in the Components business, market share gains in the North American medium-duty truck market and distributor acquisitions offset weakness in global mining markets, international power generation and the North American heavy-duty truck market. I am pleased that in this environment of weak global growth, we were able to generate record cash flow from operations that allowed us to continue to invest in the business and increase the cash returned to shareholders by 34 percent in 2013.”
Lineberger added that the company expects revenues to grow between 4 percent and 8 percent in 2014, with earnings projected to grow faster than revenues.
Sales increased 2 percent for the year in the engine segment, 21 percent in the components segment, 3 percent for the distribution segment and declined 1 percent in the power generation segment.