Cummins reports 7% growth in Q1 revenue

North American revenues increased 17% offsetting an international sales decline of 6%.

Cummins has announced its revenue reached USD4.7 billion in the first quarter, up 7% from the same period last year. The supplier attributed the growth to stronger demand in on-highway markets and distributor acquisitions in North America, and noted a 3% negative impact of currency-exchange effects from a strong US dollar. The US-based manufacturer of engines and filtration and power-generation products said its North American revenues increased 17%, which offset an international sales decline of 6%. For the supplier, declines in sales in Europe and Brazil "more than offset" growth in China. The company's earnings before interest and taxation (EBIT) increased to USD562 million, with a margin of 11.9% of sales. Although EBIT increased from USD528 million in the first quarter of 2014, the margin declined slightly from 12.0%. Cummins's net income increased 14% year on year (y/y) to USD387 million, from USD338 million in the first quarter last year.