Cummins Reporting Record Revenue During 2018 (2/7/2019)
Story by RVBusiness
Cummins Inc. reported that fourth-quarter revenues increased 12% to $6.1 billion from the same quarter in 2017. Increased truck production in North America and stronger demand in global construction and power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2% primarily due to a stronger US dollar.
Fourth-quarter sales in North America improved by 17% while international revenues increased by 6% led by growth in Europe, Asia Pacific, and Latin America.
Revenues for the full year were a record $23.8 billion, 16% higher than 2017. Revenues in North America increased 19% and international sales grew 12%, with growth in all major regions.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter were $896 million, or 14.6% of sales, compared to $769 million or 14% of sales a year ago, or $808 million and 14.8 percent of sales excluding the impact of tax legislation. Fourth-quarter results included EBITDA loss of $58 million related to a write-off of an investment in an electronic logging device or ELD business, and the mark to market impact on assets related to our non-qualified benefit plans.
EBITDA for the year was a record $3.5 billion or 14.6% of sales. This compares to $3 billion or 14.8% of sales in 2017, or $3.1 billion or 15% of sales excluding the impact of tax legislation.
Net income attributable to Cummins in the fourth quarter was $579 million, or $3.63 per diluted share, compared to a net loss of $503 million, or $3.03 per diluted share, excluding the impact of tax legislation in the fourth quarter of 2017. Fourth-quarter results were positively impacted by $25 million in discrete tax items and the impact of tax reform. Excluding these items, net income attributable to Cummins in the fourth quarter was $554 million, or $3.48 per diluted share. The tax rate in the fourth quarter was 14.1%.
Revenues for the full year were a record $23.8 billion, 16% higher than 2017. Revenues in North America increased 19% and international sales grew 12%, with growth in all major regions. EBITDA for the year was a record $3.5 billion or 14.6 percent of sales. This compares to $3 billion or 14.8% of sales in 2017, or $3.1 billion or 15% of sales excluding the impact of tax legislation.
Net income attributable to Cummins for the full year was $2.1 billion, or $13.15 per diluted share, compared to a net income of $999 million, or $5.97 per diluted share. The tax rate for the full year was 20.6%, or 21.1% excluding the favorable impact of discrete tax items.
“I want to thank the more than 60,000 global employees who made our 2018 record sales and profits a reality,” said Chairman and CEO Tom Linebarger. “2019 is an historic year for Cummins as we celebrate the 100th anniversary of our company, and project another record year of financial results. Our financial strength allows us to continue investing and innovating across our broad portfolio of power solutions to remain a global technology leader for the next 100 years while continuing to return significant capital to investors.”
Please click here to view the full report.
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