Independent US engine producer, Cummins, reported second quarter revenues of $6.2 billion USD ($9 billion AUD) increased one per cent year-on-year.
Increased truck production in North America and stronger demand in North American power generation markets was partially offset by lower demand in oil and gas and international truck markets, according to Cummins. Currency negatively impacted revenues by two per cent primarily due to a stronger US dollar.
Q2 2019 sales in North America set a new record and improved by seven per cent while international revenues decreased by six per cent.
Sales in North America increased in all segments except Power Systems, which was negatively impacted by lower demand in oil and gas markets. International revenues declined primarily due to lower truck demand in China, Europe, Brazil and India.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) in the second quarter were a record $1.1 billion USD ($1.6 billion AUD), or 17 per cent of sales, compared to $897 million USD ($1.3 billion AUD) or 14.6 per cent of sales a year ago.
Net income attributable to Cummins in the second quarter was $675 million USD, compared to net income of $545 million USD ($985.7 million AUD).
“We achieved record revenues, EBITDA, and operating cash flow in the first half of 2019, extending our track record of raising performance cycle over cycle,” said Cummins Chairman and CEO, Tom Linebarger. “While we do expect to see a moderation in demand in the second half of the year, our financial strength combined with our diversified geographic and end market exposure will enable us to generate strong profits, continue to invest in future growth, and return cash to shareholders.”