Cummins Inc. on Tuesday reported results for the third quarter of 2019.
Third quarter revenues of $5.8 billion were down three percent from the same quarter in 2018. The company says lower demand for trucks and construction equipment drove the majority of the decline. Sales in North America were flat while international revenues decreased eight percent.
Net income attributable to Cummins in the third quarter was $622 million ($3.97 per diluted share), compared to net income of $692 million ($4.28 per diluted share) last year.
Despite weakening conditions in a number of our largest markets, Cummins delivered strong profits, record operating cash flow, and returned a record $910 million of cash to shareholders in the third quarter, said Chairman and CEO Tom Linebarger. While we expected to see a moderation of demand in the second half of the year, sales have weakened even faster than we anticipated. Cummins is taking actions to align our cost structure with the lower revenues while maintaining investment in products that will deliver sustainable growth and profitability.
Based on the current forecast, Cummins now expects 2019 revenue to decline two percent compared to prior guidance of flat. The company says reduction in revenue forecast is driven by lower truck production in North America, India, Brazil and Europe. In addition, there was lower demand in off-highway markets, including North America construction and global mining markets.