Cummins Reports 12% Decline in 1Q Revenue
Columbus, Ind.-based engine maker Cummins Inc. reported that first-quarter revenue of $3.9 billion decreased 12% from the first quarter of 2012, according to a company media release. Revenue in North America declined by 15% and international revenues declined by 10%.
Net income in the first quarter was $282 million, or $1.49 per diluted share, compared to $455 million, or $2.38 per diluted share, in the first quarter of 2012. Earnings before interest and taxes were $437 million or 11.1% of sales, compared to $658 million or 14.7% of sales a year ago.
The company’s light-duty automotive and RV segments posted first-quarter sales of $260 million compared to $286 million the year prior.
Cummins said that slower economic growth in China and a weakening North American truck market — where Cummins supplies nearly 40% of its heavy-duty engines — have squeezed the company’s sales and profits of late.
Chief Executive Tom Linebarger said that the company expects the first quarter to mark “the low point” for revenue this year. The company also restated its forecast for revenue to be flat to down 5% this year.
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