COLUMBUS, Ind. — Cummins Inc. today announced that it set a new company quarterly sales record with $6.1 billion in sales in the second quarter, prompting the company to again increase its full-year revenue expectations.
Second quarter revenues increased 21 percent from the same quarter in 2017. Cummins said it delivered growth in most major markets as demand for trucks, construction, mining and power generation equipment improved. Also, sales in North America improved by 22 percent while international revenues increased by 18 percent led by growth in China, Europe and Latin America.
“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. “We are on track to deliver record full year sales, earnings and cash flow. The company now plans to return 75 percent of operating cash flow to shareholders in the form of dividends and share repurchases in 2018, up from our previous plan to return 50 percent.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $897 million, or 14.6 percent of sales, up from $764 million or 15.0 percent of sales a year ago, Cummins said.
Net income attributable to Cummins in the second quarter was $545 million ($3.32 per diluted share), compared to net income of $424 million ($2.53 per diluted share) in the second quarter of 2017, the company said.
Based on the current forecast, Cummins said it expects full year 2018 revenues to be up 15 to 17 percent, compared to prior guidance of up 10 to 14 percent.
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