Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Cummins Inc.’s Bumper Quarter:
5 Things You Need to Know
Weak international
markets holding
back growth
Brazil a dampener
Revenue from North America grew 12% while
international sales slipped 6% year over year.
For 2015, Cum...
Weakness to continue
 Markets outside the
U.S./Canada contribute
more than 40% to
sales.
 Full-year revenue
guidance of ...
Key business under
pressure
Engine segment
Q2 sales improved only 2% year over year.
Slowdown in industrial markets like marine,
mining, and constru...
Top performing
segment:
Components
Components: filtration, fuel systems, emission solutions
Q2 sales and operating profit up 9% and 21%,
respectively, year ...
Income from joint
ventures down, but
not a concern
Acquisitions boosting distribution segment
Q2 earnings from joint ventures down 11%
year over year as Cummins acquired No...
Full-year guidance
unchanged
On the growth track
Cummins kept its full-year guidance unchanged despite a
stronger-than-expected quarter.
Source: Cummin...
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to b...
Upcoming SlideShare
Loading in …5
×

Cummins Inc.’s Bumper Quarter: 5 Things You Need to Know

3,582 views

Published on

Cummins delivered strong second-quarter numbers, but there's more to it than meets the eye.

Published in: Economy & Finance
  • Be the first to comment

Cummins Inc.’s Bumper Quarter: 5 Things You Need to Know

  1. 1. Cummins Inc.’s Bumper Quarter: 5 Things You Need to Know
  2. 2. Weak international markets holding back growth
  3. 3. Brazil a dampener Revenue from North America grew 12% while international sales slipped 6% year over year. For 2015, Cummins targeting 34%-35% and 76% market share in the North American heavy-and- medium-duty truck markets, respectively. Weakest link: Brazil. Industry production of heavy-and-medium-duty trucks projected to slump 50% this year.
  4. 4. Weakness to continue  Markets outside the U.S./Canada contribute more than 40% to sales.  Full-year revenue guidance of 2%-4% growth muted because of slowdown in international markets. Source: Cummins Q2 Earnings Presentation
  5. 5. Key business under pressure
  6. 6. Engine segment Q2 sales improved only 2% year over year. Slowdown in industrial markets like marine, mining, and construction offsetting strength in North American trucking market. Full-year outlook remains positive: Operating margin guidance range of 11%-12% on flat to 2% growth in revenue.
  7. 7. Top performing segment: Components
  8. 8. Components: filtration, fuel systems, emission solutions Q2 sales and operating profit up 9% and 21%, respectively, year over year. Strong aftermarket demand from North America and China. Full-year EBIT margin guidance raised to 14.5%- 15.5% versus 13.4% reported last year. Revenue projected to rise 4%-8%.
  9. 9. Income from joint ventures down, but not a concern
  10. 10. Acquisitions boosting distribution segment Q2 earnings from joint ventures down 11% year over year as Cummins acquired North American distributors previously held as JV. On the positive side, distribution segment sales jumped 21% year on year. Full-year outlook: JV income down 15%, distribution segment revenue growth of 20%- 24% and EBIT margin between 7%-8%.
  11. 11. Full-year guidance unchanged
  12. 12. On the growth track Cummins kept its full-year guidance unchanged despite a stronger-than-expected quarter. Source: Cummins Q2 Earnings Presentation
  13. 13. This $19 trillion industry could destroy the Internet One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.

×