WORLD NEWS
Cummins: Q2 2018 revenues of USD8.2-billion
Cummins plans to return 75% of operating cash flow to shareholders in the form of dividends and share repurchases in 2018.
Independent diesel engine
producer Cummins has delivered
growth in most major markets as
demand for trucks, construction,
mining, and power generation
equipment all improved. Q2
2018 revenues of USD8.2-billion
increased 21% from the same
quarter in 2017 and reached a new
quarterly record.
Sales in North America
improved by 22% while
international revenues increased
by 18%, led by growth in China,
Europe, and Latin America.
Said Cummins chairman and
CEO, Tom Linebarger, “As a result
of strong customer demand for
our products, solid execution
from our global manufacturing
and supply chain teams, and
continued focus on cost reduction,
the company delivered record
quarterly sales and earnings per
share in the second quarter. We
are on track to deliver record full-
year sales, earnings, and cash
flow. The Company now plans to
return 75% of operating cash flow
to shareholders in the form of
dividends and share repurchases
in 2018, up from our previous plan
to return 50%.”
During the second quarter,
Cummins finalised its plans for
a previously disclosed product
campaign and recorded a pre-tax
charge of USD244.6-million for the
expected costs of the campaign.
The campaign will address the
performance of an aftertreatment
component in certain on-highway
products produced between 2010
and 2015 in North America.
Earnings before interest, taxes,
depreciation, and amortisation
(EBITDA) in Q2 were USD1.2-
billion, or 14.6% of sales, up from
USD1-billion, or 15.0% of sales a
year ago.
Net income attributable to
Cummins in the second quarter
was USD736.6-million (USD4.48
per diluted share), compared to
net income of USD573-million
(USD3.41 per diluted share) in
Q2 2017.
Based on the current forecast,
Cummins expects full year 2018
revenues to be up 15 to 17%,
compared to prior guidance of up
10 to 14%. EBITDA is projected to
be in the range of 14.8 to 15.2%
of sales, down from 15.4 to 15.8%
of sales and reflects approximately
USD135.1-million of expense
associated with trade tariffs and
increased commodity costs in the
second half of the year.
Source:
www.primemovermag.com.au
OCTOBER 2018
7