Cummins announces first-quarter results

Cummins Inc. on Tuesday reported results for the first-quarter of 2016.

The Columbus-based diesel engine manufacturer reported first-quarter revenues of $4.3 billion, down nine-percent from the same quarter in 2015. Company officials say that lower production in the North American heavy-duty truck market and weak global demand for off-highway and power generation equipment contributed to the reduction in sales. Cummins adds that a stronger US dollar negatively impacted revenues by about three-percent compared to last year.

Company officials say that Revenues in North America decreased 10-percent while international sales were down eight-percent. Within international markets, Cummins says that revenue in Latin America and Asia declined the most.

Net income attributable to Cummins in the first-quarter was $321 million, say Cummins executives. That translates to $1.87 per diluted share. That’s down from $387 million, and $2.14 per diluted share, in the first quarter of 2015. The company reports that its first-quarter tax-rate was 28.4 percent.

“Our results for the first quarter reflect solid execution of our cost reduction plans in the face of very challenging market conditions,” said Rich Freeland, Cummins’ Chief Operating Officer. “Benefits from restructuring actions, material cost reduction projects and lower warranty costs all helped to mitigate the impact of lower sales.”

Based on the current forecast, Cummins expects full year 2016 revenues to be down five to nine-percent, and EBIT to be in the range of 11.6 to 12.2 percent of sales. Cummins officials say these figures are unchanged from the company’s forecast from three months ago.