Cummins Quarterly Profit Dips
(photo courtesy of Cummins)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowColumbus-based Cummins Inc. (NYSE: CMI) is reporting first-quarter net income of $511 million, down from $663 million during the same period last year. Despite the drop, Chief Executive Officer Tom Linebarger says cost reduction efforts made in 2019 contributed to the “strong profitability” amid the COVID-19 pandemic.
Linebarger says as the pandemic continues, the health and safety of the manufacturer’s employees and the communities in which it operates is a top priority.
“Our teams are working hard to support the global economy, leveraging our flexibility and strong supplier network to help our customers deliver essential products and support response efforts,” Linebarger said in a news release. “Given the significant impact the pandemic will have on demand across our industry in the second quarter and beyond, we are continuing to take actions to reduce cost and boost our already strong liquidity.”
Cummins also reports revenues for the first quarter dropped 17% from the same quarter in 2019 to $5 billion. The company says the drop was driven primarily by lower truck production in North America and weaker demand in the global construction, mining, and power generation markets.
The company is not providing revenue or profitability guidance for 2020 due to uncertainty surrounding the pandemic.
“While customer operations have begun to resume activity, the company does expect a significant impact to its second quarter results due to disruptions across customer and supplier operations and lower end market demand,” the company says. “For now, the company is planning for weak demand levels to persist for some time.”
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