Cummins reports strong profits for the second quarter of 2012

Cummins Inc. posted revenues of US$4.45 billion for the second quarter, down by 4 % from the same quarter in 2011. Without considering the impact of divestitures and currency movements, the company’s revenues were flat year over year. Weakness in China, Brazil and other international markets were offset by growth in North America. The company’s earnings before interest and taxes (EBIT) reached US$669 million or 15% of sales. Excluding profit from divestitures, EBIT was US$663 million or 14.9%of sales compared, to US$707 million or 15.2 % of sales in the second quarter of last year. Net income in the second quarter of 2012 was US$469 million ($2.47 per diluted share) compared to US$505 million in the same period of 2011 ($2.60 per diluted share).
“The Company continued to deliver strong profits despite the weakening global economic conditions,” said Tom Linebarger, Cummins Inc. Chairman and Chief Executive Officer. “Second quarter gross margins were at record levels as we continue to drive improvements in productivity and quality. Looking forward, as the global economy improves, our growth opportunities remain strong.” (July 31, 2012)