Cummins Reports Revenue Jump in Q2 2014

By Michelle Howard
Monday, July 28, 2014
Tom Linebarger

Cummins Inc. reported its results for the second quarter of 2014.


According to the report, second quarter revenue of $4.8 billion increased 7 percent from the same quarter in 2013. The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America.


Revenues in North America increased 14 percent while international sales decreased 1 percent compared to the second quarter a year ago. Within international markets, lower revenues in Mexico, Brazil and India offset stronger demand in China.


Earnings before interest and taxes (EBIT) were $657 million for the second quarter or 13.6 percent of sales. This compares to $621 million or 13.7 percent of sales a year ago.


Net income attributable to Cummins in the second quarter was $446 million ($2.43 per diluted share), compared to $414 million ($2.20 per diluted share) in the second quarter of 2013.


"Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets. Our Components business delivered very strong results in the second quarter generating record sales and profits," said Chairman and CEO Tom Linebarger. "Earlier this month we raised the quarterly dividend by 25 percent and the Board of Directors also approved a new $1 billion share repurchase program, consistent with our commitment to return 50 percent of operating cash flow to shareholders and reflecting our confidence in the Company's future."


Based on the current forecast, Cummins expects full year 2014 revenues to grow between 8% and 11%, up from its previous forecast of growth of between 6% and 10%, due largely to improving demand in North America. EBIT is expected to be in the range of 12.75 to 13.25 percent of sales.


Other recent highlights:

  • The Company named Rich Freeland as President and Chief Operating Officer
  • Cummins was named 2013 Powertrain Supplier of the Year by Chrysler Group
  • The Company was ranked among the World's Best in Newsweek's 2014 Green Rankings for our continuous efforts to reduce our environmental footprint and make a positive impact on the environment
  • For the ninth straight year Cummins was awarded a perfect score by the Human Rights Campaign Foundation (HRC) in the 2014 Corporate Quality Index as part of HRC's Best Place to Work Initiative Second quarter 2014 detail (all comparisons to same period in 2013)

Engine Segment

  • Sales - $2.7 billion, up 3 percent
  • Segment EBIT - $311 million, or 11.3 percent of sales, compared to $339 million or 12.8 percent of sales
  • Increased demand in on-highway markets in North America offset weakness in global power generation and the Brazilian truck market

Components Segment

  • Sales - $1.3 billion, up 15 percent
  • Segment EBIT - $185 million, or 14.5 percent of sales, compared to $136 million or 12.2 percent of sales
  • Higher demand in on-highway markets in North America, Europe and China more than offset weaker demand in Brazil

Power Generation Segment

  • Sales - $743 million, down 9 percent
  • Segment EBIT - $61 million, or 8.2 percent of sales, compared to $76 million or 9.3 percent of sales
  • Lower revenues in most markets particularly North America, Asia Pacific and Middle East offset stronger demand in China and Africa

Distribution Segment

  • Sales - $1.2 billion, up 30 percent overall and up 2 percent excluding acquisitions
  • Segment EBIT - $126 million, or 10.2 percent of sales, compared to $100 million or 10.5 percent of sales
  • Higher revenues were primarily driven by acquisitions and stronger demand in North America and Africa.


 


People & Company News

MobileOps Pursuing Maritime Business

Redmond, Wash. based MobileOps, Inc., a software company specializing in the design and development of maritime software applications (dispatch, safety, compliance,

Half a Century at Sea

Siegfried Schmerer already dreamed of becoming a captain as a young boy. Later, as a sailor on a coaster, he suffered from seasickness. Though he thought about giving up,

MN100: Shock Mitigation

The Company: The company provides marine organizations, boat builders and equipment manufacturers with relevant subject matter expertise plus an independent overview

Marine Propulsion

MN100: Cummins Marine, Inc.

The Company: Cummins, Inc. is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems,

USS Freedom Suffers Casualty

The U.S. Navy's first littoral combat ship USS Freedom (LCS 1) experienced a casualty to one of its main propulsion diesel engines (MPDE) on July 11 reportedly

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Finance

Advent Hires Banks to Sell Control of Brazil Port

Buyout firm Advent International Corp has hired Morgan Stanley & Co and Grupo BTG Pactual SA to advise on the sale of a controlling stake in TCP Terminal de Contêineres de Paranaguá SA,

SUNY Maritime Among 'Best Bang for the Buck' Colleges

SUNY Maritime College has been named one of the best colleges for its price by Washington Monthly.   SUNY Maritime placed in the top 30 schools in the Northeast.

Meyer Turku Continues Shipyard Investments

Meyer Turku shipyard  has further enlarged it’s investment package with a new 75 million euro steel storage and pretreatment facility. This is already a third large

News

GoM Operators Evacuating Ahead of Storm

Offshore oil and gas operators in the Gulf of Mexico are evacuating platforms and rigs in the path of Tropical Depression No. 9.   The Bureau of Safety and Environmental

White House Sees a Path to Approval of Pacific Trade Deal

The White House on Monday said it was hopeful it could win congressional approval of the Trans-Pacific Partnership trade pact before President Barack Obama leaves office,

Advent Hires Banks to Sell Control of Brazil Port

Buyout firm Advent International Corp has hired Morgan Stanley & Co and Grupo BTG Pactual SA to advise on the sale of a controlling stake in TCP Terminal de Contêineres de Paranaguá SA,

Marine Equipment

MN100: SENNEBOGEN LLC

The Company: SENNEBOGEN has been a leading name in global material handling for over 60 years. Stanley, North Carolina-based SENNEBOGEN LLC offers a complete range

Schwarze-Robitec Offers Efficiency in Shipbuilding

Cruise ships, freighters or yachts require complex supply systems on board to  be able to travel long distances in the open sea. For the supply of oil and gas, for example,

MN100: Cummins Marine, Inc.

The Company: Cummins, Inc. is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems,

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Salvage Ship Repair Sonar 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: 0.1403 sec (7 req/sec)