Cummins Inc. today reported record sales and earnings for the second quarter on strong growth in nearly every global market. The company's engine, components and distribution segments each delivered record sales and earnings.
Second-quarter sales were $4.6 billion, up 45 percent from the same period last year. Earnings before interest and taxes were $775 million and included a $68 million gain on the sale of the exhaust business from the components segment. Excluding the gain from the sale of the exhaust business, EBIT was $707 million, or 15.2 percent of sales.
Net income attributable to Cummins in the second quarter was $505 million or $2.60 per diluted share. Excluding the $68 million gain ($37 million after tax or 19 cents per share), the company reported earnings of $2.41 per share compared to $1.25 per share in the second quarter of 2010.
“The company's performance in the second quarter underscores the success of our long-term strategy to diversify and seek profitable growth across geographies and end markets,” chairman and CEO Tim Solso said in a statement.
As a result of the company’s performance in the quarter and its outlook for the remainder of the year, Cummins today increased both its sales and EBIT forecast for 2011. The company now expects to earn 14.5 percent EBIT on $18 billion in sales in 2011.
Engine segment sales of $2.9 billion were up 53 percent compared to the same quarter a year ago. They were driven by strong growth in global truck markets and off-highway markets including mining and oil and gas.