Cummins Profit Rises, Helped by Cost Cuts
February 09 2017 - 10:33AM
Dow Jones News
By Imani Moise
Cummins Inc. reported higher-than-expected earnings for the
fourth quarter despite declining revenue amid a slowdown in North
American truck production.
Shares rose 2.8% to $149.74 in early trading.
The engine manufacturer expects poor market conditions to
continue into 2017 and said the first quarter will likely be a low
point for the fiscal year.
Cummins also provided a cautious sales outlook for the year,
forecasting revenue to be flat to 5% down. Analysts polled by
Thomson Reuters were expecting a revenue decrease of 2.2%.
Sales were down in each of the company's reportable segments,
but earnings rose, topping views thanks to cost reduction
activity.
In all, Cummins reported a profit of $378 million, or $2.25 a
share, up from $161 million, or 92 cents, a year earlier. Revenue
dropped 5.5% to $4.5 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.99 on $4.34 billion in revenue.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
February 09, 2017 10:18 ET (15:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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