Cummins Inc. posted record profits and a 12% jump in revenue for the third quarter as demand for trucks, construction and power generation equipment improved.
Net income for the three months ended Sept. 30 was $692 million, or about $4.28 per share, on revenue of $5.94 billion, compared with net income of $453 million, or $2.71 a share, on revenue of $5.29 billion in the same period a year ago.
“We delivered record earnings this quarter due to increased demand in a number of key markets, growth in our market share and the benefits of cost reduction initiatives,” Chairman and CEO Tom Linebarger said in a Oct. 30 press release. “Year to date, we have returned $1.4 billion to shareholders in the form of dividends and share repurchase, consistent with our plan to return 75% of operating cash flow in 2018.”
We delivered record earnings this quarter due to increased demand in a number of key markets, growth in our market share and the benefits of cost reduction initiatives.
Cummins Inc. Chairman and CEO Tom Linebarger
Third-quarter sales in North America increased 17%, while international revenue grew by 6%, the company reported.
Engine sales totaled $2.7 billion in the quarter compared with $2.3 billion a year ago, with double-digit gains in unit shipments across all categories. Heavy-duty shipments led the way with 34,600 units in 2018, a gain of 23.2% from 24,500 in 2017. Medium-duty shipments were 76,000 units, up 10.9% from 68,500. Light-duty shipments were 76,800 units, up 15.8% from 62,500.
Sales in the distribution segment were $1.9 billion in the third quarter compared with $1.7 billion a year ago; component sales were $1.8 billion compared with $1.5 billion; and power systems sales were $1.1 billion compared with $1.06 billion.
Sales in a new electrified power segment were $2 million in the third quarter, the company reported. Included in the segment is the Cummins PowerDrive, a hybrid electric powertrain system introduced in September at the 2018 IAA Commercial Vehicle Show in Hanover, Germany.
Earnings before interest, taxes, depreciation and amortization was $983 million, or 16.5% of sales. Those figures for the third quarter last year were $788 million and 14.9%, respectively.
Columbus, Ind.-based Cummins has 58,600 employees and serves about 190 countries and territories through a network of 500 company-owned and independent distributor locations and more than 7,500 dealer locations.