Actionable news
All posts from Actionable news
Actionable news in CMI: CumMINS Inc,

Weak Global Demand Hurts Cummins' Year-Over-Year Comparisons, But Delivers Better Q2 Results

Cummins Inc. CMI had to bear the brunt of the weak global demand and lower truck production in North America affecting its year-over-year comparisons in the second quarter. However, its EPS was better-than-expected while revenue was in line with the expected levels.

The diesel engine maker earned $406 million as profit or $2.40 a share in the second quarter beating analysts' estimation of $2.16 a share. In comparison, it reported $471 million or $2.62 a share in the year-ago period.

Cummins revenue witnessed a 10 percent drop to $4.5 billion from the previous year period, which was in line with the predictions.

Chairman and CEO, Tom Linebarger, commented, "Benefits from restructuring actions, material cost reduction initiatives, and improvements in product quality helped to mitigate the impact of weak demand in a number of our largest markets and will position the Company for stronger performance when markets improve."

Going forward, Cummins slashed its revenue forecast for the full year. It now expects a downtick of 8-10 percent compared to the previous estimation 5-9 percent blaming on North America truck production and weaker demand. Analysts are looking for a revenue drop of 8.10 percent.

In the pre-market on Tuesday, the stock traded up by $0.70 or 0.57 percent to $122.50.

© 2016 Benzinga does not provide investment advice. All rights reserved.