Cummins Inc. posted record sales for full-year 2011 as well as strong fourth-quarter results. Fourth-quarter sales of $4.9 billion increased 19 percent from the same quarter in 2010, setting a new quarterly record for the company. The increase was driven by higher demand in truck, construction, power generation and oil and gas markets in North America. The company also posted strong growth in global mining markets, offsetting weaker demand in the construction market in China and power generation in India.
Net income in the fourth quarter was $548 million, $2.86 per diluted share. EBIT was $768 million for the quarter.
Revenue for the full year was $18 billion, a 36-percent jump compared with $13.2 million in 2010, with strong growth in most geographic regions. Net income for the full year was $1.85 billion, up from $1.04 billion in 2010.
“Cummins had its best year ever in 2011, despite economic uncertainty in a number of regions,” said Tom Linebarger, chairman and CEO. “We continue to benefit from our leading position in a number of end markets and geographies. Revenue in the United States grew 53 percent and international revenue grew 27 percent year over year. In fact, we experienced record full-year revenues in North America, Brazil, China, India and a number of other important markets.”
Cummins is anticipating company revenues to increase 10 percent in 2012 with EBIT in the range of 14.5 to 15 percent of sales. “Our 2011 results and our forecast for 2012 reaffirms our confidence in reaching our goal of achieving $30 billion in sales and 18 percent EBIT in 2015,” Linebarger added.
Cash flow from operations more than doubled to $2.1 billion.
In the fourth quarter, engine segment sales were $3.1 billion, a 23-percent increase, with improved demand in North America for on-highway, heavy-duty, mid-range and light-duty engines, with strong demand for oil and gas engines. Component sales jumped 19 percent to $1.1 billion, a record quarter driven by increased North American demand. Europe, India and Brazil posted year-over-year growth, offsetting weaker demand from China.
In the power generation segment, sales increased 2 percent year over year in the fourth quarter to $920 million, with improved demand in North America, China and Europe.
In distribution, revenue jumped 19 percent in the fourth quarter to $834 million, with strong growth in Asia Pacific, power generation demand in North America and oil and gas and mining markets.