Cummins Reports First Quarter 2016 Results

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Cummins Press Release /  May 3, 2016

Cummins Inc. today reported results for the first quarter of 2016.

First quarter revenues of $4.3 billion decreased 9 percent from the same quarter in 2015. Lower production in the North American heavy-duty truck market and weak global demand for off-highway and power generation equipment contributed to the reduction in sales. Currency negatively impacted revenues by approximately 3 percent compared to last year, primarily due to a stronger US dollar.

Revenues in North America decreased 10 percent while international sales declined by 8 percent. Within international markets revenues in Latin America and Asia declined the most.

Earnings before interest and taxes (EBIT) in the first quarter were $484 million, or 11.3 percent of sales, down from $562 million or 11.9 percent of sales a year ago.

Net income attributable to Cummins in the first quarter was $321 million ($1.87 per diluted share), compared to $387 million($2.14 per diluted share) in the first quarter of 2015. The tax rate in the first quarter of 2016, was 28.4 percent.

“Our results for the first quarter reflect solid execution of our cost reduction plans in the face of very challenging market conditions,” said Rich Freeland Chief Operating Officer. “Benefits from restructuring actions, material cost reduction projects and lower warranty costs all helped to mitigate the impact of lower sales.”

Other recent highlights:

Our QSK95 diesel engine received Tier 4 Final certification from the EPA for the US locomotive market.

We announced a joint venture with Olayan to expand access to markets and enhance the service and support provided to customers in the Middle East.

Ethisphere Institute named Cummins to its list of the world’s most ethical companies for the 9^th straight year.

We returned $745 million to shareholders in the form of dividends and share repurchases in the first quarter, consistent with our plans to return 75 percent of Operating Cash Flow to shareholders in 2016.

 

Read the full press release – including first quarter detail for all Cummins business units – by clicking on the link below.

Press Release – Cummins Reports First Quarter 2016 Results