Cummins Q4 Profit Decreases - Quick Facts

(RTTNews) - Cummins Inc. (CMI) reported that its net income attributable to the company for the fourth quarter decreased to $300 million or $1.97 per share from $579 million or $3.63 per share in 2018.

In addition to the restructuring costs, the latest-quarter results included charges of $22 million or $0.14 per share related to the cessation of development and production of certain products in North America and our planned exit of a business in Africa.

Excluding restructuring costs, net income for the latest-quarter was $390 million or $2.56 per share.

Quarterly revenues were $5.6 billion down 9 percent from the same quarter in 2018. Lower truck production in North America and weaker demand in global construction, mining, and power generation markets drove the majority of the revenue decrease. Currency negatively impacted revenues by 1 percent primarily due to a stronger US dollar.

Analysts polled by Thomson Reuters expected the company to report earnings of $2.42 per share and revenues of $5.3 billion. Analysts' estimates typically exclude special items.

Cummins projects full year 2020 revenues to be down 8 to 12 percent. Revenue declines in 2020 are driven by lower truck production in North America, Europe, China, and India as well as lower projected demand in off-highway markets, including global Power Generation, mining, oil and gas, and construction markets.

The company plans to return 75 percent of Operating Cash Flow to shareholders in the form of dividends and share repurchases.