Income, Revenue Fall at Cummins Inc.
Engine manufacturer Cummins Inc. reported net income for the third quarter ended Oct. 2 fell to $289 million, or $1.72 per share, compared with $380 million, or $2.14, in the 2015 period, pointing to the weaker North American truck engine market, among other factors.
Revenue also declined, dropping to $4.1 billion, compared with $4.6 billion year earlier. Lower truck production in North America and weak international demand for power generation equipment were the most significant drivers of the decline in sales, Cummins said.
Heavy-duty engine shipments fell 33% year-over-year to 16,400, Tom Linebarger, chairman and CEO, said during an earnings conference call Nov. 1.
“I think we were close to 35% [heavy-duty market] share in Q3,” he said. “Having said that, we’re gaining share in the market in a lot of places. With virtually every mixed-fleet customer I’ve talked to, and so using multiple engines, they are increasing their share with Cummins.”
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Medium-duty engines were about 18,000, down 20% from the 2015 period, giving Cummins a 73% market share, which was at the low end of its guidance, he said.
The company forecast heavy-duty production in 2016 to be 200,000 units and its market share to be in the range of 27% to 30%, unchanged from its second-quarter projections.
On the medium-duty side, it said production dipped sharply in the third quarter is not expected to improve in the fourth quarter. Therefore, it lowered its full-year forecast to 108,000 units from 117,000 units three months ago.
