Cummins 1Q Net Rises 33% On Stronger-Than-Expected Sales
Cummins Inc.'s (CMI) first-quarter earnings rose 33% as the truck engines and power-generation-systems maker's sales and margins continued to grow.
Cummins has seen its earnings soar for more than two years as strong demand for truck engines and parts in North America and other key markets continued to drive sales, despite truck manufacturers' attempts in recent years to install more of their own engines in their trucks.
Cummins reported a profit of $455 million, or $2.38 a share, up from $343 million, or $1.75 a share, a year earlier. Sales jumped 16% to $4.47 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of $2.22 a share on revenue of $4.4 billion.
Gross margin rose to 26.8% from 24.5%.
Sales in the engines business, the company's largest top-line contributor, rose 20% to $2.9 billion. Revenue from components was up 19% to $1.1 billion. Power generation sales fell 2% while distribution sales jumped 21%.
The company also backed its full-year revenue guidance.
Shares closed Monday at $115.83 and were inactive premarket. The stock has risen 9.5% over the past three months.
Copyright © 2012 Dow Jones Newswires