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

People & Company News

Evergreen Line's Ital Lunare to Make Maiden Call in Boston

As part of the new service linking North Asia and the U. S. East Coast (NUE2), Evergreen Line's containership Ital Lunare will make the first ever direct call into

FARO 3D Documentation Conference

The FARO 3D Documentation Conference, to be held October 13-15, 2014, was created as a forum for sharing knowledge, best practices and insight into the world of laser scanning and 3D documentation.

Elco Launches Electric Outboard Motor Line

Expansion into outboard category brings benefits of electric propulsion to even more boaters Elco Motor Yachts, a company in electric and hybrid marine propulsion for more than 120 years,

Marine Propulsion

Elco Launches Electric Outboard Motor Line

Expansion into outboard category brings benefits of electric propulsion to even more boaters Elco Motor Yachts, a company in electric and hybrid marine propulsion for more than 120 years,

Laborde Now a Steyr Motors Distributor

To help increase business and provide even better service for its customers, Laborde Products has been chosen as a Steyr Motors distributor. The company will offer sales,

Thrustmaster Reaches 30-year Milestone

Thrustmaster of Texas announced the achievement of an important company milestone: 30 years in the marine propulsion industry. Established in 1984 by its current president, Joe R.

Finance

Star Bulk to Acquire 34 Drybulk Vessels

Star Bulk entered into a definitive agreement with Excel Maritime Carriers Ltd., and as a result, will acquire 34 drybulk vessels for an aggregate of 29.917 million

Statoil: Gudrun Officially Opened

Norwegian prime minister Erna Solberg officially opened the Gudrun platform in the North Sea today, 19 August. This is the first new Statoil-operated platform on

Turkish Shipbuilder to Send Floating Power to Gaza

Turkish shipbuilder Karadeniz Holding plans to send an electricity generating vessel to Gaza to provide urgently needed power in the enclave left reeling by an

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Salvage Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.1750 sec (6 req/sec)