Cummins (CMI) reported Tuesday its highest quarterly earnings in more than 25 years, attributing the gains to continued improvements in manufacturing and strong performance in international markets.
Net income more than quadrupled to $246 million, or $1.25 a share, compared with $56 million, or 28 cents a share, in the year-earlier period. The non-GAAP EPS fell ahead of average analyst estimates of 91 cents, according to a Thomson Reuters poll.
Continue Reading Below
The Indiana-based company posted revenue of $3.21 billion, up 32% from $2.43 billion in the same quarter last year, and beating the Street’s view of $2.84 billion. The positive results were largely driven by the company’s global business segments, as sales were up 51% out of the United States.
“We had an outstanding quarter,” said Cummins CEO Tim Solso. “The work we have done to strengthen our manufacturing operations during the downturn has resulted in significant productivity gains, and we continue to benefit from our leadership position in large and growing international markets such as China, India and Brazil.”
The positive results led the producer of service engines and related technologies to raise its full-year guidance, now expecting to generate pre-tax earnings of 12% of sales on revenue of $13 billion.