Cummins says sales growth to slow after robust 2018

Columbus-based Cummins Inc., which posted a 16 percent revenue increase in 2018, said Wednesday that this year will be much tougher, with revenue likely coming in between flat and up 4 percent.

The engine-maker said 2018 revenue reached a record $23.8 billion. Profit for the year was $2.1 billion, or $13.15 per share.

Fourth-quarter revenue was $6.1 billion, up 12 percent from the same period a year earlier. Cummins attributed the sales growth to increased North American truck production and stronger global demand in the construction and power generation markets.

Fourth-quarter profit was $579 million, or $3.63 per share—shy of the consensus estimate from analysts of $3.81 per share. 

Excluding the effects of federal tax reform, which caused Cummins to take a one-time charge of $777 million in the fourth quarter of 2017, the company’s year-ago profit would have been $503 million, or $3.03 per share. 

At midday Wednesday, Cummins shares were trading at $148.06, down 1.2 percent from Tuesday’s close. Shares have traded between $124.40 and $179.67 over the past year.

Please enable JavaScript to view this content.

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.