Cummins Inc. this week reported first-quarter revenue of $4.5 billion, an increase of 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 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 CEO. “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.”
In the Engine segment, sales in the first quarter were $2.9 billion, up 20 percent from the same period a year ago on improved demand in North American. Growth in both the truck and construction markets offset lower sales to the China construction and Brazilian truck markets.
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.
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.