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Cummins Inc. reported $675 million in net income for the second quarter ended June 30, a 23.8% increase from the second quarter of 2018.
Earnings per share were $4.27, up from $3.32 from the similar period last year.
The Columbus, Ind.-based manufacturer reported record second-quarter revenue of $6.2 billion, an increase of only 1% from the same quarter in 2018.
Cummins officials said increased truck production in North America and stronger demand in North American power generation markets was partially offset by lower demand in oil and gas and international truck markets. Also nipping at revenue growth was sales. Cummins reported second-quarter sales in North America set a new record and improved by 7%, but international revenue decreased by 6%.
“While we do expect to see a moderation in demand in the second half of the year, our financial strength combined with our diversified geographic and end-market exposure will enable us to generate strong profits, continue to invest in future growth, and return cash to shareholders,” said Tom Linebarger, Cummins CEO and chairman.
Engine sales were $2.7 billion, Cummins reported. North America engine segment revenue increased by 7% due to higher demand in on-highway markets, while international revenue declined 15% primarily due to lower demand in China.
The Cummins components segment reported sales of $1.8 billion, down 2% from the same quarter in 2018. Component revenue in North America increased by 5% due to higher heavy- and medium-duty truck production, while international sales declined by 12% due to lower demand in Europe, China and India, Cummins said.
Cummins said it now expects 2019 revenue to be flat. The lower outlook is driven by reduced truck demand in international markets, moderating parts demand in North America, and the impact of a stronger U.S. dollar, Cummins officials said.
The engine manufacturer has more than 55,000 employees globally.