logo
Plus   Neg
Share
Email

Cummins Slashes FY19 Outlook - Quick Facts

While reporting financial results for the third quarter on Tuesday, Cummins Inc. (CMI) slashed its revenue growth and EBITDA guidance for the full-year 2019.

For fiscal 2019, the company now projects revenues to decline 2 percent, lower than previous guidance of flat with last year.

The company said the reduction in revenue forecast is driven by lower truck production in North America, India, Brazil, and Europe, as well as lower demand in off-highway markets, including North America construction and global mining markets.

Full year EBITDA is also now expected to be 15.9 to 16.3 percent of sales, compared to prior guidance of 16.25 to 16.75 percent, due to the impact of lower volumes and the acquisition of Hydrogenics.

The company noted that the outlook does not include any potential impact of the company's review of its emission certification process and compliance with emissions standards or expenses associated with executing future cost reduction initiatives.

"Cummins is taking actions to align our cost structure with the lower revenues while maintaining investment in products that will deliver sustainable growth and profitability," said Chairman and CEO Tom Linebarger.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Food and Drug Administration has granted accelerated approval to Tazverik for the treatment of adults and pediatric patients aged 16 years and older with metastatic or locally advanced epithelioid sarcoma not eligible for complete resection. Epithelioid sarcoma is a rare sub-type of soft... STIHL recalls about 16,400 STIHL RE 90 pressure washers due to injury hazard. According to the company, the recalled pressure washer nozzle can disconnect from the spray wand when under pressure during use, posing an injury hazard. STIHL said it received seven reports of the nozzle detaching from... CVS Health Corp. launched 13 new HealthHUB locations in CVS Pharmacy stores across Philadelphia and South New Jersey. The healthcare company said it developed the HealthHUB store format to help people manage chronic conditions more conveniently and affordably. The store also features health and wellness products, clinical services and expertise.
Follow RTT
>