No spin zone
Cummins saw the usual seasonal sales weakness that's cropped up in previous first quarters. However, that didn't stop the company from beating analyst expectations on top and bottom lines. Here's how the company's done in its recent past:
Source: Morningstar and corporate earnings report.
First-quarter net income grew to $455 million on sales of $4.47 billion, but many investors fixated instead on what was said during the company's conference call. Linebarger's mixed conditions include an anticipated 5% decline in both Chinese and European revenues, as well as unchanged guidance in Indian and Latin American markets, offset by strong growth in the North American market. Cummins saw its market share in North American engines rise to 45% from 33% last year, shipping 20,000 15-liter engines to set an all-time record. That's much better than competitor Navistar, which stalled out in red ink territory with its own recent earnings.
Revving up a different engine?
Cummins executives had nothing to say about their natural gas engine conversion partnership with Westport Innovations
I wouldn't be too worried about Cummins' prospects, unless broader macroeconomic trends turn negative. If that happens, this industrial company will hardly be alone.
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