Shares in Cummins Inc. had their biggest intraday rise in nine months Tuesday morning after the Columbus-based maker of heavy-duty engines reported second-quarter profit and revenue that beat analyst estimates.
Cummins reported earnings of $471 million, or $2.62 a share, up from a year-earlier profit of $446 million, or $2.43 a share. Revenue grew 3.7 percent, to $5.02 billion.
That compared with the average estimates of $2.55 per share in earnings and $4.94 billion in revenue compiled by Bloomberg.
Cummins cited North American demand and acquisition of distributors in the region for the increases.
“We delivered strong results in the second quarter, despite challenging economic conditions in a number of international markets, and we increased cash returned to shareholders,” Cummins CEO Tom Linebarger said in a written statement. “Earnings improved as a result of good performance by our manufacturing and supply chain organizations and solid execution on material cost reduction initiatives."
Shares were up 3 percent, to $127.55 each, late Tuesday morning, after advancing 4.6 percent earlier in the day, the biggest intraday increase since Oct. 28.
Cummins shares had fallen 14 percent this year through Monday.