Cummins Inc.’s revenue and profit fell short of analysts’ expectations in the second quarter, driving the engine maker’s stock price down in early trading on Tuesday.
Columbus-based Cummins reported a second-quarter profit of $675 million, or $4.27 per share, compared with $545 million, or $3.32 per share, during the same period a year earlier. According to Yahoo Finance, a consensus of analysts had expected a profit of $4.41 per share.
Quarterly sales totaled $6.2 billion, compared with $6.1 billion during the same period last year. Analysts had expected sales of $6.36 billion.
The news sent Cummins’ stock price down in overnight trading. Shares were trading at $164.02 shortly after the market opened Tuesday, down about 6 percent from Monday’s closing price of $173.97.
North America was a strong point for Cummins last quarter. The company said its North American sales increased by 7 percent—setting a new quarterly record—with sales increases in all segments except power systems, which was hurt by lower demand in oil and gas markets.
International sales declined by 6 percent, mostly because of lower demand for trucks in China, Europe, Brazil and India.
Currency issues had a 2 percent negative impact on sales, mostly because of the strength of the U.S. dollar.
Looking ahead, Cummins said it now expects its 2019 revenue to be flat, which is at the low end of the company’s previously issued guidance. Earlier this year, the company said it expected annual revenue growth of between 0 and 4 percent.
The lowered sales outlook, the company said, is due to reduced truck demand in international markets, slowing demand for parts in North America, and the impact of a stronger U.S. dollar.