Cummins Inc. reported second-quarter revenues of $4.5 billion, a 2-percent increase from the second quarter of 2012. Revenues in North America increased by 7 percent and international revenues declined by 4 percent. Within international markets, growth in Brazil and China was offset by weaker demand in Europe, India and Mexico.
Earnings before interest and taxes were $621 million or 13.7 percent of sales, compared to $663 million or 14.9 percent of sales a year ago, excluding special items.
Second-quarter revenues increased 15 percent from the first quarter of 2013 and EBIT improved to 13.7 percent of sales from 11.1 percent.
“Revenues increased primarily due to higher demand in North America, helped by market share gains in the medium-duty truck market,” said chairman and CEO Tom Linebarger. “I am pleased with our execution this quarter and profitability improved significantly from first quarter levels. The recent increase in our dividend, coupled with our ongoing share repurchase program, underscore our confidence in the company’s future.”
Sales in the Engine Segment were $2.7 billion, down 7 percent from the same period in the year-ago quarter. Segment EBIT was $339 million, or 12.8 percent of sales, compared to $376 million or 13.2 percent of sales in Q212.
Sales in the Power Generation segment were $814 million, down 10 percent from the year-ago period. Segment EBIT was $76 million, or 9.3 percent of sales, compared to $94 million or 10.3 percent of sales in 2012 Q2. Weaker demand in most international markets offset stronger revenues in North America.
Based on the current forecast, the company expects full-year revenues to be flat compared to 2012 and EBIT to be in the range of 13 to 14 percent of sales.
Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.