Fourth quarter revenue was $5.1 billion, an increase of 11% from the same quarter in 2013. The year-over-year increase was driven by higher revenues in North America which more than offset lower demand in Brazil and Europe. Net income attributable to Cummins in the fourth quarter was $444 million, or$2.44 per diluted share, compared to $432 million, or $2.32 per diluted share, in the fourth quarter of 2013.
Revenues for the full year were a record $19.2 billion, 11% higher than 2013. Acquisitions contributed 3% to revenue growth. Revenues in North America increased 20% and international sales grew 2%. Within international markets, growth in China more than offset weaker demand in Brazil and India.
Net income attributable to Cummins for the full year was $1.65 billion, or $9.02 per diluted share, up from $1.48 billion, or $7.91 per diluted share, in 2013. The full year tax rate was 28.7%.
“We reported record revenues in 2014 despite weak economic conditions in several of our most important international markets,” said Chairman and CEO Tom Linebarger. “Revenues grew 11% as demand in on-highway markets in North America improved, we continued executing our distributor acquisition strategy, and we delivered strong growth in China driven by new products. We continued to invest in future growth, reflecting our commitment to technology and product leadership, while growing EBIT faster than sales.”
Cummins’ improvement in profitability was driven by record performance in the components and distribution businesses and higher earnings in the engine business. Results in the company’s power generation business fell short of expectations, but actions the company took to lower costs will improve earnings going forward. Demand in North American on-highway markets is expected to improve again in 2015, but will be partially offset by continued weakness in international markets and the negative impact of the strong U.S. dollar.
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