Cummins Inc. reported fourth quarter revenues of $6.1 billion, a 12-percent increase compared to the fourth quarter of 2017. Increased truck production in North America and stronger demand in global construction and power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent because of a stronger U.S. dollar.
Fourth quarter sales in North America improved 17 percent, while the rest of the world’s revenues increased 6 percent, led by growth in Europe, Asia Pacific and Latin America.
EBITDA in the fourth quarter was $896 million or 14.6 percent of sales, compared to $760 million or 14 percent of sales a year ago. Net income attributable to Cummins in the fourth quarter was $579 million compared to a net loss of $274 million in the fourth quarter of 2017. Fourth quarter results were positively impacted by $25 million in discrete tax items and the impact of tax reform.
Revenue for the full year was a record $23.8 billion, 16 percent higher than in 2017. Revenue in North America jumped 19 percent and international sales grew 12 percent, with growth in all major regions.
EBITDA for the year was a record $3.5 billlion or 14.6 percent of sales, compared to $3 billion or 14.8 percent of sales in 2017.
“2019 is a historic year for Cummins as we celebrate the 100th anniversary of our company and project another record year of financial results,” said chairman and CEO Tom Linebarger. “Our financial strength allows us to continue investing and innovating across our broad portfolio of power solutions to remain a global technology leader for the next 100 years, while continuing to return significant capital to investors.”
During the year, DiversityInc named Cummins one to the Top 50 companies for diversity for the 12th consecutive year, ranking No. 12 on the 2018 list. Cummins also received the highest ranking possible for its environmental and social performance from Institutional Shareholder Services.