Cummins reports sales increases in North America, dips elsewhere

Cummins is reporting that its third quarter revenues of $7.3 billion were up 11 percent over the same quarter last year, not counting the acquisition of Meritor.

According to the Columbus-based engine manufacturer’s quarterly report, sales in North America increased 19 percent however international revenues decreased 1 percent compared to last year. That dip was caused by a market slowdown in China and the indefinite suspension of operations in Russia.

The company reported that earnings before interest, taxes, depreciation, and amortization for the third quarter improved year-over-year to $884 million. But they were down compared to the second quarter of the year. That was attributed to weaker joint venture earnings in China, a bonus paid to employees and cost associated with both the Meritor acquisition and the plans to break off the Filtration business.

Net income just for Cummins in the third quarter was $400 million. That compared to $534 million last year.

If the Meritor acquisition costs are removed, the company had income of $456 million. The company says the Meritor business had $737 million in revenue in the two months since it was acquired, but that was a $37 million net loss.

Based on its current forecast, excluding the Meritor business, Cummins expects revenue to be up 8 percent for the full year, which is in line with previous estimates.