First quarter revenue of $4.4 billion increased 12% from the same quarter in 2013. The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America. Revenues in North America increased 25% while international sales were flat compared to the first quarter a year ago. Within international markets, weakness in India, Australia, Mexico and Brazil offset higher revenues in China and Europe.
Net income attributable to Cummins in the first quarter was $338 million, or $1.83 per diluted share, compared to $282 million, or $1.49 per diluted share in the first quarter of 2013.
Earnings before interest and taxes (EBIT) were $528 million for the first quarter or 12% of sales. This compares to $437 million or 11.1% of sales a year ago.
“We delivered good incremental margins in the first quarter as demand in on-highway markets in North America improved. We are also well on track to deliver the expected benefits from our North American distributor acquisitions as we execute our plans and end market demand improves. Conditions in a number of international markets remain very weak, particularly in India and Australia, leading to lower demand for power generation and mining equipment,” said Chairman and CEO Tom Linebarger. “We continue to release exciting new products that will drive future profitable growth and we repurchased 3 million shares in the first quarter, consistent with our commitment to return 50 percent of full year operating cash flow to shareholders through a combination of dividends and share repurchase.”
Based on the current forecast, Cummins expects full year 2014 revenues to grow between 6% and 10%, up from its previous forecast of growth of between 4% and 8%, due largely to improving demand in North America.
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