Cummins Inc. reported $6 billion in first quarter revenue, an 8-percent increase compared to the same period in 2018. Increased truck production in North America and stronger demand in global construction and North American power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent primarily because of a stronger US dollar.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were a record $1.0 billion, or 17.2 percent of sales, compared to $700 million or 12.6 percent of sales a year ago.
First quarter sales in North America improved by 13 percent while international revenues increased by 1 percent.
“The company shipped a record number of truck engines in North America during the first quarter,” said Chairman and CEO Tom Linebarger. “Our market-leading position in this region reflects our close partnerships with our customers who rely on us to provide a broad range of power solutions for their needs.
“We achieved record EBITDA in the first quarter while also celebrating our 100th anniversary. We are on track to deliver record results for the year and return significant capital to investors and will continue to invest across our broad portfolio to power a strong future for our stakeholders.”
Based on the current forecast, Cummins is maintaining its 2019 revenue guidance of flat to up 4 percent driven primarily by increased demand in North America on-highway markets. The company expects to return 75 percent of operating cash flow to shareholders in 2019 in the form of dividends and share repurchases.
First Quarter 2019 Highlights for Cummins include:
- Cummins was named to Ethisphere’s list of the World’s Most Ethical Companies for a 12th consecutive year.
- Barron’s magazine announced that Cummins made its 100 Most Sustainable Companies list, moving from No. 60 in its inaugural ranking in 2018 to No. 14 in its 2019 list.
- The Human Rights Campaign (HRC) announced that Cummins received a perfect score for a 14th consecutive year in its Corporate Equality Index.
- Amtrak announced that it will be purchasing 75 Charger locomotives for delivery starting in 2021 which will use Cummins’ QSK95 Tier 4 engine systems to help deliver clean, efficient power for passenger trains.