Cummins Inc. reported second-quarter revenue of $4.45 billion, a 4-percent decrease from the same quarter in 2011. Excluding the impact of divestitures and currency movements, revenues were flat year over year. Growth in North America offset weakness in international markets, particularly China and Brazil.
Earnings before interest and taxes were $669 million or 15 percent of sales. Excluding gains from divestitures, EBIT was $663 million or 14.9 percent of sales compared to $707 million or 15.2 percent of sales in the second quarter of 2011.
Net income attributable to Cummins in the second quarter of 2012 was $469 million ($2.47 per diluted share) compared to $505 million in the same period a year ago ($2.60 per diluted share). Excluding gains from divestitures, the company reported earnings of $2.45 per share compared to $2.41 in the second quarter of 2011.
“The Company continued to deliver strong profits despite the weakening global economic conditions,” said Tom Linebarger, chairman and CEO. “Second-quarter gross margins were at record levels as we continue to drive improvements in productivity and quality. Looking forward, as the global economy improves, our growth opportunities remain strong.”
Sales in the Engine segment were $2.8 billion, down 2 percent from the same period a year ago. Segment EBIT was $376 million, or 13.2 percent of sales, compared to $377 million or 13.0 percent of sales in the second quarter of 2011. Improved demand in North American heavy-duty truck, medium-duty truck and light-duty truck and construction markets offset the lower sales to the China construction, Brazilian truck and North American oil and gas markets
In the Power Generation segment sales were flat at $909 million. Segment EBIT was $94 million, or 10.3 percent of sales, compared to $105 million or 11.6 percent of sales in the year-ago quarter. Higher revenues in North America offset lower demand in Europe, China and Latin America.
Based on the current forecast, Cummins expects full-year revenues to be $18 billion, with EBIT in the range of 14.25 to 14.75 percent of sales.
Headquartered in Columbus, Ind., Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.