Cummins Revenue Jumps 16 Percent in 2018; 12 Percent in Fourth Quarter
Cummins Inc. reported fourth quarter revenues of $6.1 billion, a 12-percent increase compared to the fourth quarter of 2017. Increased truck production in North America and stronger demand in global construction and power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent because of a stronger U.S. dollar.
Fourth quarter sales in North America improved 17 percent, while the rest of the world’s revenues increased 6 percent, led by growth in Europe, Asia Pacific and Latin America.
EBITDA in the fourth quarter was $896 million or 14.6 percent of sales, compared to $760 million or 14 percent of sales a year ago. Net income attributable to Cummins in the fourth quarter was $579 million compared to a net loss of $274 million in the fourth quarter of 2017. Fourth quarter results were positively impacted by $25 million in discrete tax items and the impact of tax reform.
Revenue for the full year was a record $23.8 billion, 16 percent higher than in 2017. Revenue in North America jumped 19 percent and international sales grew 12 percent, with growth in all major regions.
EBITDA for the year was a record $3.5 billlion or 14.6 percent of sales, compared to $3 billion or 14.8 percent of sales in 2017.
“2019 is a historic year for Cummins as we celebrate the 100th anniversary of our company and project another record year of financial results,” said chairman and CEO Tom Linebarger. “Our financial strength allows us to continue investing and innovating across our broad portfolio of power solutions to remain a global technology leader for the next 100 years, while continuing to return significant capital to investors.”
During the year, DiversityInc named Cummins one to the Top 50 companies for diversity for the 12th consecutive year, ranking No. 12 on the 2018 list. Cummins also received the highest ranking possible for its environmental and social performance from Institutional Shareholder Services.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.