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.