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 January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

HII Acquires Engineering Solutions Division

Huntington Ingalls Industries (HII) has acquired the Engineering Solutions Division of The Columbia Group, a designer and builder of unmanned underwater vehicles

Sjo Resigns from Polarcus Board of Directors

Polarcus Limited announced that Hege Sjo will resign from its board of directors effective February 2, 2015.   Sjo has accepted an appointment as Deputy Director

Congestion is Port of Long Beach’s Toughest Issue

Slangerup’s State of the Port address outlines goals for Energy Island, smarter supply chain   In his first-ever State of the Port address, Port of Long Beach

Marine Propulsion

Wärtsilä to Power LNG-fueled RoPax Ferry

A ferry being built for Sweden’s Rederi AB Gotland will be fueled by LNG, featuring a Wärtsilä integrated solution which includes a complete LNG powered propulsion- and fuel storage and supply system,

First Container for LNG Hybrid Barge

The HUMMEL (bumblebee) LNG Hybrid Barge will enable Becker Marine Systems to supply low-emission power to cruise ships lying at port in Hamburg. The first container

IntelliJet: Cleantech Propulsion for High Speed Applicatios

IntelliJet Marine, Inc. will present a paper on propulsion and computer simulation for sustainable high speed boats and ships at ASNE Day 2015.   Jeff Jordan

Finance

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

Chevron Scraps 2015 Share Repurchase Program

Chevron Corp halted its 2015 share repurchase program on Friday, a move to conserve cash amid tumbling oil prices.   The company's shares extended loses on the news,

Marquette Transportation Reportedly for Sale

Marquette Transportation Company LLC, a U.S. towboat operator, is exploring a sale that could value it at more than $1 billion and has attracted the interest of

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction
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: 0.2490 sec (4 req/sec)