Engine maker Cummins Inc. said Tuesday its first-quarter earnings declined from a year ago on “weaker demand in most major geographies and end markets.”
Net income fell to $282 million, or $1.49 per share, from $455 million, or $2.38, a year ago. Analysts had forecast a profit of $1.86 a share, according to Thomson Reuters.
Sales fell 12.3% to $3.9 billion, and engine-segment sales fell 19% to $2.3 billion, Cummins said in a statement.
Engine segment earnings before interest and taxes fell to $195 million, or 8.5% of sales, from $381 million, 13.3%, of sales, a year ago.
Engine volume fell 18% year-over-year, with shipments of high-horsepower engines down 24% due to weakness in mining, oil and gas and power generation markets.
Component sales fell 7% to $1 billion, power generation sales slipped 4% to $746 million and distribution sales declined 11% to $778 million, excluding acquisitions.
Total EBIT for the company was $437 million or 11.1% of sales, compared with $658 million, or 14.7% of sales, a year ago.
Cummins said it expects its full-year revenue to be flat to down 5% and EBIT to be 13% to 14% of sales.
