COLUMBUS, IN- Diesel engine maker Cummins Inc. has reported record revenue in 2014 and an 11-percent increase in the fourth quarter from the same time the year before, due to improvements in the North American truck market.
“Revenues grew 11 percent [in the fourth quarter] as demand in on-highway markets in North America improved, we continued executing our distributor acquisition strategy, and we delivered strong growth in China driven by new products,” said Chairman and CEO Tom Linebarger.
Revenue for the full year was $19.2 billion, 11 percent higher than 2013, with the company attributing acquisitions contributing three percent to revenue growth. Revenue in North America increased 20 percent and international sales grew two percent
The company’s engine segment reported fourth quarter earnings before interest and taxes of $315 million, up from $235 million a year earlier. Sales for the segment increased 11 percent during this time, hitting $2.8 billion.
Cummins said strong performance in the components and distribution businesses and higher earnings in the engine business drove improvement in profitability. Results in the company’s power generation business fell short of expectations, but it said the actions it has taken to lower costs will improve earnings going forward.
Cummins predicted demand in North American on-highway markets is expected to improve again in 2015, but will be partially offset by continued weakness in international markets and the negative impact of the strong U.S. dollar.
Based on the current forecast, Cummins expects full year revenues to grow between two-and-four percent, and earnings before interest and taxes to be in the range of 13.5 percent to 14 percent.
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