3 P.M. UPDATE
COLUMBUS, Ind. — Cummins Inc. has reported higher-than-expected quarterly revenue aided by strong demand in international markets and raised its outlook for the year as the global economy continues to rebound from the COVID-19 pandemic.
The Columbus-based company said Tuesday its first-quarter revenue rose to $6.1 billion from $5 billion a year ago—a 22% increase — and reported earnings of around $4.07 per share. Analysts on average had expected $5.34 billion in revenue and $3.44 in earnings per share.
International revenue increased 45% driven by strong demand in all global markets, including new product sales in China and India. Sales in North America rose 7%.
Cummins also increased its forecast for company-wide revenue this year to 20% to 24%, up from 8% to 12%, with a stronger outlook in most regions and markets — including the heavy-duty truck market in North America, among others.
ORIGINAL STORY
COLUMBUS, Ind. – Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2021.
First quarter revenues of $6.1 billion increased 22 percent from the same quarter in 2020. Sales in North America increased 7 percent while international revenues increased 45 percent driven by strong demand across all global markets as well as new product sales in China and India.
“Demand accelerated in the first quarter, as the global economy continued to improve, driving strong sales growth across most businesses and regions and resulting in solid profitability. The strength and breadth of the rebound in demand has surpassed our original expectations and we have raised our full year outlook,” said Chairman and CEO Tom Linebarger. “While we are encouraged by the rising demand, the pace of recovery has placed a strain on global supply chains leading to increased costs and challenges in fulfilling end-user demand. The shortage of key components such as semiconductor chips has been the primary challenge, with adverse weather conditions impacting the US, and bottlenecks in global logistics further adding to order backlogs. The ability to supply is our key focus now and we are doing everything we can to mitigate the impact. I want to thank our global employees, especially those in our supply chain and manufacturing operations, and our suppliers for their extraordinary efforts to manage through these challenges and support our customers.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were $980 million (16.1 percent of sales), compared to $846 million (16.9 percent of sales) a year ago.
Net income attributable to Cummins in the first quarter was $603 million ($4.07 per diluted share) compared to $511 million ($3.41 per diluted share) in 2020. The tax rate in the first quarter was 22.0 percent including $4 million, or $0.03 per share, of favorable discrete items.
For the complete story, see Wednesday’s Republic.
