COLUMBUS, Ind. — Cummins, Inc. reported third quarter earnings dropped 9 percent compared to the same period in 2015.
“Due to the slow pace of growth in the global economy, we continue to face weak demand in a number of our most important markets,” said Cummins Chairman and CEO Tom Linebarger. “The restructuring actions that we initiated in the fourth quarter of 2015, combined with strong execution on material cost reduction initiatives, productivity gains and improvements in product quality are all helping to mitigate the impact of weaker revenues.
Significant factors in the decline were low truck sales in North America and weak demand for power generation equipment worldwide. A stronger U.S. Dollar was responsible for 2 percent of the decrease. North American Revenues were off by 13 percent, international sales dropped 3 percent, while revenue gains in the Chinese market helped offset declining revenue in the Middle East and Africa.
During 2016, the diesel engine giant has returned $1.6 billion to shareholders in the form of dividends and stock buy-back plans.
Highlights of 2016 include:
- Cummins was honored with the 2016 United States Overall Best Heavy-Duty Truck Engine Supplier Leadership Award by Frost and Sullivan.
- The company announced a new partnership with Peterbilt Motors Company, a division of PACAAR to develop and demonstrate technologies under the U.S. Department of Energy Supertruck II program.
- Cummins was inducted into the Billion Dollar Roundtable for its commitment to diversity.
