Columbus, Ind.-based Cummins Inc. is reporting second quarter net income of $545 million, compared to $424 million during the same quarter a year earlier while revenues increased 21% to a quarterly record of $6.1 billion.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $897 million, or 14.6% of sales, up from $764 million or 15% of sales a year ago.
“As a result of strong customer demand for our products, solid execution from our global manufacturing and supply chain teams and continued focus on cost reduction, the company delivered record quarterly sales and earnings per share in the second quarter,” said Chairman and CEO Tom Linebarger, noting that the company has raised its full-year revenue forecast to be higher by 15% to 17%. “We are on track to deliver record full year sales, earnings and cash flow. The company now plans to return 75% of operating cash flow to shareholders in the form of dividends and share repurchases in 2018, up from our previous plan to return 50%.”
The company says demand for trucks, construction, mining and power generation equipment all grew during the quarter and sales in North American and internationally — especially in China, Europe and Latin America — increased.
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