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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Maersk to Scrap Ships at India's Alang Beaches, NGO Dismayed

Maersk Line said on Friday it had chosen four shipbreaking yards along India's Alang beaches to handle an increase in vessels that need to be scrapped, to the dismay

Teknotherm Marine Moves HVAC Arm to Bergen

Maritime heating, ventilation and air conditioning (HVAC) firm Teknotherm Marine has established a new subsidiary is established with the name Teknotherm Marine HVAC AS.

Marine Propulsion

Cummins Expands Marine Tier 3 Product Line

Cummins Inc., a manufacturer of diesel engines and generator sets for the marine industry, has launched a new Onan marine U.S. Environmental Protection Agency (EPA) Tier 3-certified generator,

James Troop Supplies Engines for 3 Naval Vessels

Liverpool City Region (UK) based ship engine specialist James Troop & Co has won an order to supply Volvo Penta diesel engines for three European naval vessels being built on Merseyside.

The Next Generation of Hull Performance Management

Hull performance monitoring solutions can offer significant fuel savings potential, a fact that is prompting growing interest from the maritime industry. To spur

Finance

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Salvage Ship Repair Winch
rss | archive | history | articles | privacy | 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: 0.1066 sec (9 req/sec)