Cummins released its first quarter earning report Tuesday, announcing revenues of $6.0 billion, an increase of 8 percent from the same quarter in 2018.
Cummins says increased truck production in North America and stronger demand in global construction and North American power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent primarily due to a stronger U.S. dollar. First quarter sales in North America improved by 13 percent while international revenues increased by 1 percent.
“The company shipped a record number of truck engines in North America during the first quarter,” says Chairman and CEO Tom Linebarger. “Our market-leading position in this region reflects our close partnerships with our customers who rely on us to provide a broad range of power solutions for their needs.”
Cummins reports earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were a record $1.0 billion, or 17.2 percent of sales, compared to $700 million or 12.6 percent of sales a year ago. First quarter results include a non-segment and non-taxable gain of $37 million ($0.23 per diluted share) related to the mark to market impact on assets related to our non-qualified benefit plans. Net income attributable to Cummins in the first quarter was $663 million ($4.20 per diluted share), compared to net income of $325 million ($1.96 per diluted share), or $403 million ($2.43 per diluted share) excluding the impact of tax legislation in the first quarter of 2018.
“We achieved record EBITDA in the first quarter while also celebrating our 100th anniversary,” Linebarger says. “We are on track to deliver record results for the year and return significant capital to investors, and will continue to invest across our broad portfolio to power a strong future for our stakeholders.”
Based on the current forecast, Cummins says it is maintaining its 2019 revenue guidance of flat to up 4 percent driven primarily by increased demand in North America on-highway markets. EBITDA is expected to be in the range of 16.25 percent to 16.75 percent of sales, an increase from the prior range of 15.75 percent to 16.25 percent of sales, primarily due to lower projected material costs. The company expects to return 75 percent of Operating Cash Flow to shareholders in 2019 in the form of dividends and share repurchases.
Cummins says its Engine and Distribution segments were up 8 percent in Q1, with its Components segment up 6 percent, and its Power Systems segment was flat year-over-year.
