Cummins reported third-quarter revenue of $5.3 billion, representing a 26% increase from $3.9 billion during the same period in 2016.
Revenues in North America increased 25% due to higher demand in truck, oil and gas and construction markets. International sales grew 28% primarily due to strong truck and construction demand in China, sales of new products in India, and increased demand from global mining customers.
Net income attributable to Cummins in the third quarter was $453 million, or $2.71 per diluted share, compared to $289 million, or $1.72 per diluted share. The tax rate in the third quarter of 2017 was 26.5%.
Earnings before interest and taxes (EBIT) was $640 million, or 12.1% of sales, an increase from $398 million, or 9.5% of sales, a year ago.
“Cummins experienced positive momentum in demand in a number of important markets, resulting in strong sales growth in the third quarter,” said Chairman and CEO Tom Linebarger. “Earnings improved over the year-ago period due to stronger volumes and operational improvements that more than offset increased quality costs. Year to date, we have returned $913 million to shareholders in the form of dividends and share repurchases consistent with our plan to return 50% of operating cash flow in 2017.”
Highlights during the quarter included:
- The company entered into an asset purchase agreement with Brammo Inc., which designs and develops battery packs for mobile and stationary applications. When complete, this will be an important milestone in Cummins’ efforts to become a global electrified power leader.
- The Eaton Cummins Automated Transmission Technologies joint venture became fully operational on schedule on Aug. 1. The joint venture will capitalize on the secular shift to more automated transmissions in commercial vehicle markets.
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