Cummins raises full-year outlook as demand picks up steam

Komatsu

01/08/2024 14:33

Aug 1 (Reuters) - U.S. truck engine maker Cummins Inc
 CMI.N  on Thursday beat second-quarter estimates and forecast
improved revenue margins boosted by demand in the power
generation market, sending its shares up 4.6% in early trading.
    Better than expected demand for the company's industrial
applications, particularly in the mining sector, drove up sales
for its power systems segment by 9% to $1.6 billion in the
quarter.
    The company has also been implementing cost-cutting actions
to counter waning demand for heavy-duty trucks in key regions
including North America as well as slow export demand in China.
    "We still expect slowing demand in the North America
heavy-duty truck market in the second half of the year" said CEO
Jennifer Rumsey in a statement.
    Cummins has been actively investing in fuel cell and
hydrogen production technology as consumers steer towards
greener products.
    In July, Brazilian Miner Vale  VALE3.SA  announced a
partnership with Japan's Komatsu  6301.T  and Cummins to develop
low-emission haul trucks.
        Cummins now expects its full-year revenue to be down 3%
to flat compared to the previous expectation of a 2% to 5%
decline.
    Cummins also raised its EBITDA growth expectations for 2024
to 15.0% to 15.5% from 14.5% to 15.5% estimates earlier.
        The Indiana-based company reported earnings per share of
$5.26 for the quarter ended June 30, well above analysts'
estimates of $4.81 per share.
    It also reported revenue of $8.8 billion, beating estimates
of $8.34 billion.

 (Reporting by Raechel Thankam Job; Editing by Shailesh Kuber)
 ((RaechelThankam.Job@thomsonreuters.com;))