Cummins Reaffirms Full Year Guidance; Beats Q1 Estimates

(RTTNews) - Cummins Inc. (CMI) announced the company expects full year 2016 revenues to be down 5 to 9 percent, and EBIT to be in the range of 11.6 to 12.2 percent of sales, unchanged from its forecast three months ago.

Net income attributable to Cummins in the first quarter was $321 million or $1.87 per share, compared to $387 million or $2.14 per share in the first quarter of 2015. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $1.78 for the quarter. Analysts' estimates typically exclude special items.

Earnings before interest and taxes in the first quarter were $484 million, or 11.3 percent of sales, down from $562 million or 11.9 percent of sales a year ago.

First quarter revenues of $4.3 billion decreased 9 percent from the same quarter in 2015. The company said, lower production in the North American heavy-duty truck market and weak global demand for off-highway and power generation equipment contributed to the reduction in sales. Analysts expected revenue of $4.30 billion, for the quarter.