Cummins Inc. reported today (Feb. 6) revenue increases for the fourth-quarter and all of 2017 compared to the previous year.
Revenues for the full year 2017 were $20.4 billion, 17% higher than 2016.
Fourth-quarter revenues of $5.5 billion increased 22% from the same quarter in 2016. Strong demand for trucks, construction and mining equipment drove the majority of the revenue increase, the company said in a news release.
Earnings before interest and taxes (EBIT) in the fourth quarter were $620 million, up from $526 million. EBIT for the year was $2.4 billion up from $2.0 billion in 2016.
Net income attributable to Cummins in the fourth quarter was a net loss of $274 million (a loss of $1.65 per diluted share), compared to net income of $378 million ($2.25 per diluted share). Fourth quarter net income included $777 million in one-time charges related to tax reform.
Net income attributable to Cummins for the full year was $999 million ($5.97 per diluted share), compared to $1.4 billion ($8.23 per diluted share) in 2016.
“The company delivered strong growth, solid profitability and record operating cash flow in 2017,” Cummins Chairman and CEO Tom Linebarger said. “We expect demand to remain strong in many of our core markets in 2018 and profitability to improve as a result of higher sales and continued execution of our cost reduction initiatives. The company again plans to return at least 50% of operating cash flow to shareholders in 2018.”
Based on the current forecast, Cummins expects full year 2018 revenues to be up 4% to 8%.