• ITVI.USA
    12,784.770
    -114.930
    -0.9%
  • OTRI.USA
    16.090
    0.030
    0.2%
  • OTVI.USA
    12,766.470
    -115.110
    -0.9%
  • TLT.USA
    2.820
    0.070
    2.5%
  • TSTOPVRPM.ATLPHL
    2.520
    0.160
    6.8%
  • TSTOPVRPM.CHIATL
    1.860
    0.020
    1.1%
  • TSTOPVRPM.DALLAX
    1.310
    0.140
    12%
  • TSTOPVRPM.LAXDAL
    2.260
    0.100
    4.6%
  • TSTOPVRPM.PHLCHI
    1.260
    0.040
    3.3%
  • TSTOPVRPM.LAXSEA
    2.730
    0.150
    5.8%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
  • ITVI.USA
    12,784.770
    -114.930
    -0.9%
  • OTRI.USA
    16.090
    0.030
    0.2%
  • OTVI.USA
    12,766.470
    -115.110
    -0.9%
  • TLT.USA
    2.820
    0.070
    2.5%
  • TSTOPVRPM.ATLPHL
    2.520
    0.160
    6.8%
  • TSTOPVRPM.CHIATL
    1.860
    0.020
    1.1%
  • TSTOPVRPM.DALLAX
    1.310
    0.140
    12%
  • TSTOPVRPM.LAXDAL
    2.260
    0.100
    4.6%
  • TSTOPVRPM.PHLCHI
    1.260
    0.040
    3.3%
  • TSTOPVRPM.LAXSEA
    2.730
    0.150
    5.8%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
Company earningsEquipmentTrucking

Cummins crushes estimates with better-than-expected Q1 results

Cost-cutting before pandemic credited with limiting financial hit

Cummins Inc. (NYSE:CMI) reported much stronger than expected revenue and profit than analysts expected in the first quarter, benefitting from cost cutting before the coronavirus pandemic struck.

The leading maker of diesel engines for on- and off-highway trucks reported net income of $511 million, or $3.41 per fully diluted share, down 17% from $663 million in the same quarter of 2019.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were 16.9% of sales compared with 17.2% in the first quarter of 2019.

The consensus of analysts predicted earnings per share of $2.18 and revenue of $4.87 billion, according to Seeking Alpha.

Cummins completed the layoff of 2,000 workers globally that was announced in November 2019 by the end of March. It also has idled four engine plants in southern Indiana until at least May 4, or whenever production resumes at its major truck manufacturing customers.

“Given the significant impact the pandemic will have on demand across our industry in the second quarter and beyond, we are continuing to take actions to reduce cost and boost our already strong liquidity,” Cummins CEO Tom Linebarger said in a statement.

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Alan Adler

Alan Adler is a Detroit-based award-winning journalist who worked for The Associated Press, the Detroit Free Press and most recently as Detroit Bureau Chief for Trucks.com. He also spent two decades in domestic and international media relations and executive communications with General Motors.
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