Diesel engine maker Cummins, Inc. (CMI) reported Tuesday a profit for the first quarter that increased from last year, reflecting revenue growth amid strength in the North American market. Both earnings per share and quarterly revenues topped analysts' expectations. The company also maintained its sales forecast for the full-year 2012.
"Cummins continues to benefit from its geographic diversification and its leadership position in a number of end markets as evidenced by our very strong first quarter results," Chairman and CEO Tom Linebarger said in a statement.
The Columbus, Indiana-based company reported net income of $455 million or $2.38 per share for the first quarter, up from $343 million or $1.75 per share in the prior-year quarter.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $2.22 per share for the first quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 16 percent to $4.47 billion from $3.86 billion in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $4.40 billion.
The sales growth was attributable to strong growth in global mining markets, as well as the higher demand in truck, power generation and construction markets in North America.
These were partially offset by weaker demand in the truck market in Brazil, the construction market in China as well as construction and power generation markets in Europe.
Revenues in North America grew 40 percent in the first quarter, offsetting near-term softness in some emerging markets.
Sales for the engine segment rose 20 percent from a year ago to $2.9 billion, distribution sales increased 21 percent to $775 million, and components sales grew 19 percent to $1.1 billion from last year. Meanwhile, power generation segment sales decreased 2 percent to $780 million.
Looking ahead to fiscal 2012, Cummins maintained its revenue growth forecast of 10 percent from last year, implying full-year revenues of $19.86 billion, based on total reported sales of $18.05 billion in 2011. Street is currently looking for full-year 2012 revenues of $20.11 billion.
CMI closed Monday's regular trading session at $115.83, down $1.29 on a volume of 2.23 million shares, lower than the three-month average volume of 2.41 million shares. In the past 52-week period, the stock has been trading in a range of $79.53 to $129.51.
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