Cummins reports 12-percent revenue increase for second quarter

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Tribune photo by Aaron Piper / Cummins Inc.’s Seymour Technical Center on East Fourth Street. AARON PIPER | THE TRIBUNE

COLUMBUS, Ind. — Cummins Inc. said higher demand for trucks and construction equipment in North America and China, and stronger sales to mining and oil and gas customers, drove a 12-percent increase in revenues — to $5.1 billion — compared to the same quarter last year.

Net income attributable to Cummins in the second quarter was $424 million ($2.53 per diluted share), compared to $406 million ($2.40 per diluted share) in the same quarter a year ago. Based on the current forecast, Cummins expects full year 2017 revenues to be up 9 to 11 percent, higher than the prior forecast of up 4 to 7 percent.

“We delivered strong revenue growth in all four operating segments in the second quarter due to improving conditions in a number of important markets where we also have leading share. Earnings increased due to solid operational performance, partially offset by higher warranty costs that resulted in second quarter EBIT that was below our expectations” said Chairman and CEO Tom Linebarger. “As a result of stronger than expected orders in truck and construction markets in North America and China, and improving demand from global mining customers we have raised our 2017 full year outlook.”

Please read Wednesday’s Tribune for more details.