Cummins Fourth-Quarter Income Rises as Revenue Dips
Independent engine maker Cummins Inc. posted higher fourth-quarter net income and slightly lower revenue.
Net income for the period ended Dec. 31 jumped to $378 million, or $2.25 per diluted share, compared with $161 million, or 92 cents, a year earlier.
“Despite weak conditions in a number of our largest markets, Cummins delivered fourth-quarter results that were a little better than expected due to our strong market share in on-highway markets in North America and the benefits of our cost reduction work,” Chairman and CEO Tom Linebarger said in a statement.
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Revenue was $4.5 billion, down 6% from the same quarter in 2015, largely reflecting lower commercial truck production in North America and weak global demand for industrial engines and power-generation equipment, the Columbus, Indiana-based company said Feb. 9.
It shipped 18,500 heavy-duty engines in the quarter, down from 24,300 a year earlier, the company said. Medium-duty shipments were 58,000, down 1,700 engines from a year earlier.
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Also, the Environmental Protection Agency has certified Cummins’ full range of heavy- and medium-duty diesel engines as meeting the 2017 greenhouse gas-emission standards, the company said.
Net income attributable to Cummins for the full year was $1.39 billion, or $8.23, compared with $1.4 billion, or $7.84, in 2015.
Revenue for the full year 2016 was $17.5 billion, 8% lower than in 2015.
