Cummins Inc. Boosts Quarterly Dividend to Stockholders
The board of directors of Cummins Inc. approved a 5.1% increase in the quarterly dividend July 12, hiking the rate from 97.5 cents per share to $1.025 for all stockholders as of Aug. 22.
The company plans to release second quarter earnings Aug. 2, after reporting declines in sales and net income in the first quarter relative to the same time in 2015 because of the North American heavy-duty truck market.
The manufacturer earned $321 million, or $1.87 a share, on global revenue of $4.29 billion for the three months ended April 3. The analyst’s consensus, according to Bloomberg News, is that Cummins will report $370 million in net income, or $2.21 per share, on global revenue of $4.49 billion for the second quarter, which, if accurate, would be a 10% drop in net income and 21% drop in global revenue as compared to the same period in 2015.
The next dividend payout will occur Sept. 1.
Cummins designs, manufactures and sells diesel and natural gas engines to heavy-duty truck manufacturers in the United States and more than 190 countries, according to a company description. The company also builds fuel systems, air handling, filtration, emission solutions and electrical power generation systems.
The Columbus, Indiana-based company says it has 55,000 people worldwide, approximately 600 company-owned and independent distributor locations and approximately 7,200 dealer locations.
