Cummins engine | Dongfeng Cummins parts | Cummins engine parts

Diesel Engine Maker Cummins 2nd-Qtr Profit, Revenue Rise

July 28 (Reuters) – Diesel engine maker Cummins Inc (CMI.N) reported a 4 percent rise in quarterly revenue, boosted by distributor acquisitions in North America and stronger demand in truck and bus markets.

Total revenue increased to $5.02 billion in the second quarter from $4.84 billion in the same period last year.

Cummins' revenue from North America jumped 12 percent in the quarter, while international sales fell by 6 percent, dragged lower by a weak economy in Brazil.

Net income attributable to Cummins rose to $471 million, or $2.62 per share, from $446 million, or $2.43 per share, a year earlier.

Cummins expects full-year 2015 revenues to grow between 2 percent and 4 percent.

Second-quarter sales rose in all four of its major segments. In engines, strong demand for on-highway, or trucks and buses, drove sales growth, which was offset by weaker demand in global industrial markets and lower truck demand in Brazil.

Growth in the distribution segment included a $14 million gain from North American acquisitions, while a stronger dollar hurt the segment's sales by 6 percent.

Higher sales in components and power generation were driven by demand in international markets.

Cummins is scheduled to have an earnings conference call to at 9 a.m. CST (1400 GMT).

Expectations from the North American truck industry for original equipment manufacturers remains "robust," said Steve Volkmann, an analyst at Jefferies. He added that the power generation business continued to be "soft" and was looking for comments from management on "any additional restructuring."

Shares of Cummins rose nearly 4 percent to $128.55 in premarket trade. 

Tags: ,,,,,,

Customer Service