Cummins beats third-quarter sales estimates on truck engine demand

Cummins

02/11/2023 13:15

Nov 2 (Reuters) - Cummins  CMI.N  reported third-quarter
sales on Thursday that beat analysts' estimates and the truck
engine maker raised its fiscal 2023 revenue forecast on robust
demand.
    The company's shares were up 3.5% before the bell.
    Demand for heavy-duty trucks been strong in the United
States as the country continues to upgrade its transportation
infrastructure under the Biden administration's $1 trillion
package signed into law in 2021.
    Cummins reported net sales of $8.43 billion in the quarter,
compared with estimates of $8.19 billion, according to LSEG
data.
    The company said it now expects fiscal 2023 revenue growth
of 18% to 21%, up from its previous outlook of 15% to 20%
growth.
    Cummins, however, warned of slowing demand in certain
markets, especially North America, in the fourth quarter.
    "We are seeing signs of moderating demand in some markets
and are taking steps to reduce costs" CEO Jennifer Rumsey said.
    The company also narrowed its range for earnings before
interest, taxes, depreciation, and amortization to 15.2%-15.4%
of sales, compared with its prior forecast of 15.0% to 15.7% of
sales.
    Cummins reported a third-quarter profit of $4.59 per share,
missing estimates of $4.68.

 (Reporting by Raechel Thankam Job; Editing by Shounak Dasgupta)
 ((RaechelThankam.Job@thomsonreuters.com))