Cummins is reporting this morning that its earnings fell by 8 percent in 2016, but income was nearly flat year-over-year.
The company released its year end and 4th quarter numbers this morning. According to the report, revenues were $17.5 billion, down 8 percent from 2015. North American revenue was down 12 percent, but international sales were down 2 percent. The company reports that growth in China and India was offset by weaker demand in Latin America, the Middle East and Africa.
Net income for last year was $1.39 billion, down from 2015’s $1.4 billion. And earnings before interest and taxes was $2 billion compared to $2.1 billion in 2015.
The company expects revenue this year to also remain flat, or to dip by as much 5 percent.
Fourth quarter revenues of $4.5 billion were down 6 percent compared to the same quarter last year. But net income was $378 million in the 4th quarter, compared to $161 billion in 2015’s 4th quarter.
“Despite weak conditions in a number of our largest markets, Cummins delivered fourth quarter results that were a little better than expected due to our strong market share in on-highway markets in North America and the benefits of our cost reduction work,” Tom Linebarger chairman and CEO said.
“We made significant progress in a number of our key initiatives in 2016, including executing our restructuring actions, completing the acquisition of our distributors in North America and continuing to invest in new products, all of which help position the Company for profitable growth when markets improve. We also returned 75 percent of the Company’s Operating Cash Flow to shareholders, consistent with our plan for the year.”
The company listed 2016 highlights including:
- Cummins partnered with Peterbilt to develop and demonstrate technologies under the U.S. Department of Energy’s (DOE) SuperTruck II program
- Cummins was recognized with the 2016 United States Overall Best Heavy-Duty Truck Engine Supplier Leadership Award by Frost and Sullivan
- The Environmental Protection Agency (EPA) certified Cummins’ full range of heavy- and medium-duty diesel engines for the 2017 Greenhouse Gas Emission Standards
- The Company returned 75 percent of Operating Cash Flow to shareholders in the form of dividends and share repurchases
- For the twelfth straight year, Cummins Inc. was awarded a perfect score in the 2017 Corporate Equality Index (CEI) from the Human Rights Campaign