Indiana-based Cummins Inc. on Tuesday beat expectations with its third-quarter earnings while narrowly missing revenue predictions for the quarter.
The Columbus-based engine manufacturer reported a profit of $692 million, or $4.28 per share, up 53 percent, from $453 million, or $2.71 per share, in the year-ago quarter.
Earnings adjusted for non-recurring gains came in at $4.05 per share, topping an estimate of $3.75 per share by eight analysts surveyed by Zacks Investment Research.
Cummins reported revenue of $5.94 billion in the period, an increase of 12.5 percent, from $5.29 billion in the third quarter of 2017. The revenue barely missed a consensus prediction of $5.95 billion by six analysts surveyed by Zacks.
“We delivered record earnings this quarter due to increased demand in a number of key markets, growth in our market share and the benefits of cost reduction initiatives,” Cummins Chairman and CEO Tom Linebarger said in written remarks.
Sales rose 17 percent in the Cummins engine segment, to $2.7 billion, 14 percent in the components segment, to $1.8 billion, and 10 percent in the distribution segment, to $1.9 billion.
Sales increases were driven by increased truck production in North America and strong demand for power-generation equipment, oil and gas engines, Cummins said.
Cummins shares slipped 38 cents Tuesday morning, to $131 each. They have declined about 26 percent since the beginning of the year.