UPDATE: Cummins Posts Upbeat Q2 Earnings, Lifts Revenue Forecast

Cummins

reported better-than-expected second-quarter earnings and lifted its revenue outlook for the full year. The Columbus, Indiana-based company posted its quarterly earnings of $446 million, or $2.43 per share, versus $414 million, or $2.20 per share, in the year-ago quarter. Its revenue rose 7% to $4.8 billion. However, analysts were expecting earnings of $2.38 per share on revenue of $4.82 billion. Revenues in North America rose 14%, while international sales slipped 1%. Engine segment sales rose 3% to $2.7 billion, while components segment sales surged 15% to $1.3 billion. Power generation segment sales fell 9% y/y to $743 million, while distribution segment sales jumped 30% to $1.2 billion. Earnings before interest and taxes rose to $657 million in the quarter from $621 million. The company also announced a new $1 billion buyback plan. Chairman and CEO Tom Linebarger said, "Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets. Our Components business delivered very strong results in the second quarter generating record sales and profits." For the full year, Cummins now projects revenue growth of 8% to 11%, versus its earlier growth forecast of 6% to 10%. Cummins shares fell 0.10% to $150.00 in pre-market trading.