Cummins Revenue Falls 9% as Demand Remains Weak
November 01 2016 - 12:24PM
Dow Jones News
By Joshua Jamerson
Engine maker Cummins Inc. said revenue fell more than expected
in the latest period amid a prolonged slump in demand.
Shares fell 4.1% to $123.76 in morning trading.
The decline was mostly attributable to lower truck production in
North America and weak international demand for power-generation
equipment. Currency factors dented the top line by about 2%
compared with last year on a stronger U.S. dollar that makes its
products more expensive overseas. Cummins also has been pressured
by weak commodity prices and soft economic growth in some
developing overseas markets.
Revenue in North America slipped 13% and international sales
dipped 3%, as declines in the Middle East and Africa offset higher
revenue from China.
Over all, the company earned $289 million, or $1.72 a share,
compared with $380 million, or $2.14 a share, a year earlier.
Excluding items, the company earned $2.02 a share; analysts, polled
by FactSet, expected $1.96 a share.
Sales fell about 9% to $4.19 billion, missing projections for
$4.23 billion.
Engine segment sales fell 12% to $1.9 billion, components sales
fell 8% to $1.1 billion and power systems sales fell 13% to $856
million.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
November 01, 2016 12:09 ET (16:09 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Cummins (NYSE:CMI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cummins (NYSE:CMI)
Historical Stock Chart
From Sep 2023 to Sep 2024
