Cummins has reported its results for the first quarter of 2019, showing revenues of $6 billion, an increase of 8 percent from the same quarter in 2018. Increased truck production in North America and stronger demand in global construction and North American power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent primarily due to a stronger U.S. dollar.
First quarter sales in North America improved by 13 percent while international revenues increased by 1%.
“The company shipped a record number of truck engines in North America during the first quarter,” said Tom Linebarger, chairman and CEO. “Our market-leading position in this region reflects our close partnerships with our customers who rely on us to provide a broad range of power solutions for their needs.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were a record $1 billion, or 17.2 percent of sales, compared to $700 million, or 12.6 percent of sales, a year ago.
Net income attributable to Cummins in the first quarter was $663 million, compared to net income of $325 million.
“We achieved record EBITDA in the first quarter while also celebrating our 100th anniversary,” said Linebarger. “We are on track to deliver record results for the year and return significant capital to investors and will continue to invest across our broad portfolio to power a strong future for our stakeholders.”
Based on the current forecast, Cummins is maintaining its 2019 revenue guidance of flat to up 4% driven primarily by increased demand in North America on-highway markets. EBITDA is expected to be in the range of 16.25% to 16.75% of sales, an increase from the prior range of 15.75% to 16.25% of sales, primarily due to lower projected material costs.
Other first quarter highlights include:
- Cummins being named to Ethisphere’s list of the World’s Most Ethical Companies for a 12th consecutive year.
- Barron’s magazine announced that Cummins made its “100 Most Sustainable Companies” list, moving from No. 60 in its inaugural ranking in 2018 to No. 14 in its 2019 list.
- The Human Rights Campaign (HRC) announced that Cummins received a perfect score for a 14th consecutive year in its Corporate Equality Index.
Sales in the engine segment were $2.7 billion, up 8 percent. The components segment saw $1.9 billion in sales, up 6 percent, while the power systems segment saw $1.1 billion in sales, flat versus the prior year.
