kscarbel2 Posted November 2, 2016 Share Posted November 2, 2016 Today's Trucking / November 1, 2016 Cummins Inc. reports that its third quarter revenue of $4.2 billion is down 9% over the same period last year. In its earnings statement, Cummins noted that “lower truck production in North America and weak international demand for power generation equipment were the most significant drivers of the decline in sales.” North America revenue dropped 13%, while international sales declined by 3%. Within international markets, higher revenues in China partially offset declines in the Middle East and Africa. Net income attributable to Cummins was $289 million ($1.72 per diluted share). “Due to the slow pace of growth in the global economy, we continue to face weak demand in a number of our most important markets,” announced Cummins chairman and CEO Tom Linebarger. “The restructuring actions that we initiated in the fourth quarter of 2015, combined with strong execution on material cost reduction initiatives, productivity gains and improvements in product quality are all helping to mitigate the impact of weaker revenues. We are on track to deliver our goal of 25% decremental EBIT margin for the full year 2016, as a result of strong operational performance in very challenging economic conditions. We have returned $1.3 billion to shareholders so far this year, through a combination of dividends and share repurchases, consistent with our plans to return 75 percent of operating cash flow to shareholders in 2016." For a more comprehensive look at at Cummins' third quarter performance, please click here. Quote Link to comment Share on other sites More sharing options...
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