Cummins Inc. posted second quarter revenues of $6.221 billion compared to $6.132 billion in the second quarter of 2018, a 1.5-percent increase. Increased truck production in North America and stronger demand in North American power generation markets was partially offset by lower demand in oil and gas and international truck markets. Currency negatively impacted revenues by 2 percent primarily because of a stronger U.S. dollar. Cummins Inc. posted second quarter revenues of $6.221 billion compared to $6.132 billion in the second quarter of 2018, a 1.5-percent increase. Increased truck production in North America and stronger demand in North American power generation markets was partially offset by lower demand in oil and gas and international truck markets. Currency negatively impacted revenues by 2 percent primarily because of a stronger U.S. dollar.
Second quarter sales in North America set a new record and improved by 7 percent, while international revenues decreased by 6 percent. Sales in North America increased in all segments except Power Systems, which was negatively impacted by lower demand in oil and gas markets. International revenues declined primarily because of lower truck demand in China, Europe, Brazil and India.
EBITDA in the second quarter was a record $1.1 billion, or 17 percent of sales, compared to $897 million or 14.6 percent of sales in the year-ago quarter, a 22.6-percent EBITDA increase. Net income attributable to Cummins in the second quarter was $675 million ($4.27 per diluted share), compared to net income of $545 million ($3.32 per diluted share).
“We achieved record revenues, EBITDA, and operating cash flow in the first half of 2019, extending our track record of raising performance cycle over cycle,” said chairman and CEO Tom Linebarger. “While we do expect to see a moderation in demand in the second half of the year, our financial strength combined with our diversified geographic and end market exposure will enable us to generate strong profits, continue to invest in future growth, and return cash to shareholders.”
Cummins now expects 2019 revenue to be flat, which places the forecast at the low end of our previous guidance range of flat to 4 percent. This lower outlook is driven by reduced truck demand in international markets, moderating parts demand in North America, and the impact of a stronger U.S. dollar.
Sales in the engine segment were flat year over year. On-highway revenues increased 2 percent and off-highway revenues dropped 7 percent. North America revenues increased by 7 percent because of higher demand in on-highway markets, while international revenues declined 15 percent, primarily because of lower demand in China.
Cummins’ Distribution segment was up 2 percent, its Components dropped 2 percent, and its Power Systems segment was down 3 percent with industrial revenues decreasing 11 percent because of lower demand in North America oil and gas and global mining markets while power generation revenues were flat.
