Cummins Posts Record Sales, Earnings for ’11
Columbus, Ind.-based Cummins Inc. today reported record sales, profits and cash flow from operations for all of 2011 as well as strong results for the fourth quarter.
Fourth-quarter revenue of $4.9 billion increased 19% from the same quarter in 2010 and set a new quarterly record for the diesel engine builder. The increase year-over-year was driven by higher demand in truck, construction, power generation and oil and gas markets in North America. The company also experienced strong growth in global mining markets. Growth in these markets offset weaker demand in the construction market in China and power generation in India.
Fourth-quarter net income jumped to $548 million, or $2.86 a share, from $362 million, or $1.84 a share, a year earlier. Excluding some items, profit was $2.56 a share, compared with $2.24.
Earnings before interest and taxes (EBIT) was $768 million for the fourth quarter. Excluding special items, EBIT was $677 million or 13.8% of sales, representing a 25% growth in earnings year-over-year.
Revenue for the full year was $18 billion, up 36% from 2010, with strong growth in most geographic regions.
Net income attributable to Cummins for the full year was $1.85 billion ($9.55 per diluted share), up from $1.04 billion ($5.28 per diluted share) in 2010. EBIT for the year, excluding special items, was $2.56 billion or 14.2% of sales, compared to $1.66 billion or 12.5% of sales in 2010.
“Cummins had its best year ever in 2011, despite economic uncertainty in a number of regions. We continue to benefit from our leading position in a number of end markets and geographies,” said Tom Linebarger, chairman and CEO. “Revenue in the United States grew 53% and international revenue grew 27% year-over-year. In fact, we experienced record full-year revenues in North America, Brazil, China, India and a number of other important markets.”
Based on the current forecast, Cummins anticipates that total revenues will increase 10% in 2012, with EBIT in the range of 14.5% to 15% of sales.
“Our 2011 results and our forecast for 2012 reaffirms our confidence in reaching our goal of achieving $30 billion in sales and 18% EBIT in 2015,” Linebarger said.
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