Cummins Q2 Conference Call Highlights
Cummins (NYSE: CMI) reported its second quarter earnings on Monday. Shares of the company are down 3.5 percent.
Below are some key highlights and takeaways from its conference call:
• Revenues for the second quarter were $4.8 billion, an increase of 7 percent compared to the second quarter of 2013.
• As a result, our full-year guidance for the engine business is unchanged, with revenues expected to grow between 6 percent and 8 percent and EBIT to be in the range of 10.5 percent to 11.5 percent of sales.
• Revenues in the power generation business declined by 9 percent.
• EBIT of 8.2 percent declined from 9.3 percent a year ago due primarily to lower volumes.
• Revenues in the distribution segment increased 30 percent in the second quarter, due primarily to acquisitions in North America.
• We expect to deliver incremental revenues of $500 million from acquisition this year for the company, up $100 million from our last forecast.
• And we expect the acquisitions to increase the company's earnings per share by approximately $0.30, higher than our previous forecast of between $0.20 and $0.25.
• Our revenues in North America grew 14 percent in the second quarter due to strong demand in on-highway markets.
• Shipments to the North American heavy-duty truck market exceeded 23,000 units in the second quarter, an increase of 11 percent from 2013 level.
• Our market share has improved to 73 percent for the first half of 2014.
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