Cummins Reports Results for Q2 2013

MarineLink.com
Tuesday, July 30, 2013

Cummins Inc. today reported results for the second quarter of 2013. The company said they expect full year revenues to be in line with 2012.

Second quarter revenues of $4.5 billion increased 2% from the second quarter of 2012. Revenues in North America increased by 7% and international revenues declined by 4%. Within international markets, growth in Brazil and China was offset by weaker demand in Europe, India and Mexico.

Earnings before interest and taxes (EBIT) were $621 million or 13.7% of sales, compared to $663 million or 14.9% of sales a year ago, excluding special items.

Net income attributable to Cummins in the second quarter was $414 million ($2.20 per diluted share), compared to $465 million ($2.45 per diluted share) in the second quarter of 2012 excluding special items.

Second quarter revenues increased 15% from the first quarter of 2013 and EBIT improved to 13.7% of sales from 11.1%.

"Revenues increased primarily due to higher demand in North America, helped by market share gains in the medium duty truck market," said Chairman and CEO Tom Linebarger. "I am pleased with our execution this quarter and profitability improved significantly from first quarter levels. The recent increase in our dividend, coupled with our ongoing share repurchase program, underscore our confidence in the company's future."

Based on the current forecast, the company expects full year revenues to be flat compared to 2012 and EBIT to be in the range of 13 to 14% of sales.

Recent highlights include:
•Cummins increased its dividend by 25%
•The company repurchased 2.6 million shares of common stock
•Cummins was one of only two industrial companies to be ranked among Gartner's Top 25 Supply Chain companies
•Cummins was named one of the Top 50 companies for diversity by DiversityInc for the seventh consecutive year

Second quarter detail (all comparisons to same period in 2012)

Engine Segment
•Sales - $2.7 billion, down 7%
•Segment EBIT - $339 million, or 12.8% of sales, compared to $376 million or 13.2% of sales
•Lower demand in stationary power, global mining and the heavy-duty truck market in North America were the most significant drivers of the lower revenues
•Demand increased for medium duty truck engines in North America and Brazil

Components
•Sales - $1.1 billion, an increase of 8%
•Segment EBIT - $136 million, or 12.2% of sales, compared to $116 million or 11.2% of sales
•Higher revenues primarily related to higher on-highway demand in Brazil, China and North America

Power Generation
•Sales - $814 million, down 10%
•Segment EBIT - $76 million, or 9.3% of sales, compared to $94 million or 10.3% of sales
•Weaker demand in most international markets offsetting stronger revenues in North America

Distribution
•Sales - $954 million, up 1% excluding acquisitions
•Segment EBIT - $100 million, or 10.5% of sales, compared to $92 million or 11.6% of sales
•Higher power generation and parts sales in North America offset by lower power generation sales in Europe and the Middle East

cummins.com
 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Korea Ferry Businessman's Body Located

Yoo had been target of South Korea's largest manhunt; Failure of police to catch Yoo had been burden for Park government. The body of South Korea's most wanted man,

Mitsubishi to Build Diesel Oil Import Terminal in Australia

Japanese trading house Mitsubishi Corp said it is entering Australia's diesel market by building a $103 million gas oil import terminal to tap growing demand and

Volvo Penta Offer D4, D6 Series Engine Keel Cooling Option

Volvo Penta of the Americas has announced the availability of a keel cooling option with D4 and D6 marine diesel engines to meet customer demands in the North American marine commercial market.

Marine Propulsion

Volvo Penta Offer D4, D6 Series Engine Keel Cooling Option

Volvo Penta of the Americas has announced the availability of a keel cooling option with D4 and D6 marine diesel engines to meet customer demands in the North American marine commercial market.

Wärtsilä's JV with CSSC to Expands Engines Range

Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an agreement to establish a joint venture for manufacturing medium and large bore medium speed diesel and dual-fuel engines.

Wärtsilä and CSSC in 2-stroke engine JV

Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an agreement to establish a joint venture, which will take over Wärtsilä’s 2-stroke engine business.

Finance

Germany as a Maritime Location Endangered: VDR

Germany, which currently is home to the world’s biggest container vessel fleet, will in future have fewer small shipping firms as European banks avoid the industry

Shipbuilders Vard Report Financial Fair Sailing

Designers and shipbuilders of offshore and specialised vessels, Vard Holdings, has announced its financial results for the second quarter of financial year 2014 (“2Q2014”),

Wärtsilä's JV with CSSC to Expands Engines Range

Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an agreement to establish a joint venture for manufacturing medium and large bore medium speed diesel and dual-fuel engines.

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1567 sec (6 req/sec)