COLUMBUS, Ind. — Cummins Inc. has cited lower commercial truck production and weak global demand as the reasons for a six percent decrease in earnings from the same period last year.
“Despite weak conditions in a number of our largest markets, Cummins delivered fourth quarter results that were a little better than expected due to our strong market share in on-highway markets in North America and the benefits of our cost reduction work,” said Tom Linebarger Chairman and CEO. “We made significant progress in a number of our key initiatives in 2016, including executing our restructuring actions, completing the acquisition of our distributors in North America and continuing to invest in new products, all of which help position the Company for profitable growth when markets improve. We also returned 75 percent of the Company’s Operating Cash Flow to shareholders, consistent with our plan for the year.”
Revenue totals for 2016 were $17.5 billion, eight percent lower than 2015. North American revenue was off by 12 percent and international sales dropped two percent, mostly due to foreign currency fluctuations. Excluding currency movements international growth increased by two percent.
Company officials project 2017 earnings to be flat, and expect Cummins Inc. to return at least 50 percent of operating cash flow to shareholders in the form of dividends and share repurchases.
