Cummins reported first quarter revenue of $4.7 billion, an increase of 7 percent from the same quarter in 2014.
The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America. Currency negatively impacted revenues by 3 percent compared to last year, primarily due to a stronger U.S. dollar.
Revenues in North America increased 17 percent while international sales declined by 6 percent. Within international markets, lower revenues in Europe and Brazil more than offset growth in China.
Earnings before interest and taxes increased to $562 million for the first quarter or 11.9 percent of sales, up from $528 million or 12 percent of sales a year ago.
Net income attributable to Cummins grew 14 percent in the first quarter to $387 million ($2.14 per diluted share), compared to $338 million ($1.83 per diluted share) in the first quarter of 2014. The tax rate in the first quarter of 2015, including discrete items, was 26.3 percent.
“Record profitability in our components segment, execution of our distributor acquisition strategy, the successful launch of new products in China and improved results in our power generation business all contributed to earnings growth in the first quarter,” Cummins Chairman and CEO Tom Linebarger said. “Strong performance in these areas more than offset the impact of weak demand in a number of international markets.”
Based on the current forecast, Cummins expects full year 2015 revenues to grow between 2 and 4 percent.