Cummins Quarterly Profit Up 40%
Cummins Inc. said fourth-quarter net income jumped 40% on soaring international demand, combined with record performances from its distribution and power generation businesses. The Columbus, Indiana-based company said net profit rose to $167 million from $119 million a year earlier and engine sales rose 23% to $1.84 billion from $1.5 billion.
Full-year sales totaled $9.9 billion, compared with $8.4 billion in 2004. International sales represented 51% of total consolidated sales, and 55% in the fourth quarter. "As good as the last two years have been, we are expecting 2006 to be more profitable, even if growth in our end-markets moderates," Chief Executive Officer Tim Solso said in a statement.
Sales in the fourth quarter rose 17% to a record $2.75 billion from $2.35 billion a year earlier, above analysts' expectations of $2.65 billion. Cummins' margin for the quarter was 22.5%, compared with 20.1% in the same period in 2004.
Analysts said the company put in a solid performance in the quarter, with the outlook for 2006 also good, spurred mainly by