Cummins today reported higher sales and earnings, compared with the first quarter of 2010, on continued strength in key international markets, a recovering North American truck market and productivity improvements.
First-quarter sales of $3.9 billion were up 56 percent from $2.5 billion in the same period in 2010. Earnings before interest and taxes were $532 million, or 13.8 percent of sales, double the company's earnings from the same period a year earlier.
Net income for the quarter, which ended March 27, was $343 million, or $1.75 a share, compared with $149 million, or 75 cents a share, in the first quarter of 2010.
"Our outstanding first-quarter results demonstrate that we are well-positioned to take advantage of our significant growth opportunities as markets around the world continue to recover," chairman and CEO Tim Solso said in a statement. "The work we have done over the past two years to keep the company strong during the global economic recession is paying off today."
Engine segment sales of $2.4 billion were up 68 percent, compared with the same quarter a year earlier, which was artificially weak because of a change in emissions standards and the economic downturn. Segment earnings before interest and taxes of $290 million, or 12.1 percent of sales, were a quarterly record.
Sales in the components segment were up 47 percent, to a record $924 million. Segment earnings before interest and taxes of $105 million, or 11.4 percent of sales, also were a quarterly record for the components group.
Power generation sales increased 54 percent, to $795 million, on the strength of improved sales in the segment's commercial products. Segment earnings before interest and taxes were $89 million, or 11.2 percent of sales.
The distribution segment saw a sales increase of 35 percent, to $642 million, because of growth in most major markets, especially Europe, North and Central America and Asia Pacific. Segment earnings before interest and taxes of $89 million, or 13.9 percent of sales, were a quarterly record.