2010-02-09
Cummins recently announced its performance for the fourth quarter and full year of 2009Komatsu excavatorThe product uses Cummins engines.
Cummins achieved strong performance in the fourth quarter of 2009, with sales expected to reach $11 billion in 2010
On February 2, 2010, Cummins Inc. (NYSE: CMI) recently announced its Q4 2009 results. With excellent sales performance in major global markets and a series of effective cost control measures, Cummins has achieved its best quarterly profitable revenue in history.
Cummins achieved a sales revenue of 3.4 billion US dollars in the fourth quarter of 2009, an increase of 3% compared to the same period in 2008. Net profit reached 270 million US dollars, equivalent to earnings per share of 1.36 US dollars, far exceeding the 43 million US dollars in the same period last year, equivalent to a level of 0.22 US dollars per share. The pre tax income for this quarter was $383 million, accounting for 11.3% of sales, compared to $56 million and 1.7% in the fourth quarter of 2008, respectively.
Cummins' annual sales for 2009 were $10.8 billion, a 25% decrease from $14.3 billion in 2008. This is mainly due to the global economic recession leading to a decline in demand for Cummins in most markets. Despite the adverse effects of the recession, Cummins achieved steady profit performance and strong cash flow throughout 2009, with steady improvement in performance in each quarter compared to the previous one.
Excluding institutional adjustments and other expenses, Cummins achieved a pre tax income of $774 million for the full year, accounting for 7.2% of sales. The pre tax income for 2008 was 1.26 billion US dollars, with a pre tax yield of 8.8%. In 2009, Cummins' net profit was $428 million, a decrease of 43 percentage points from 2008, equivalent to earnings per share of $2.16. The data for 2008 were $755 million and $3.84 million, respectively.
Cummins added $244 million in cash flow in the fourth quarter and achieved $500 million in cash revenue for the full year of 2009. This is mainly due to the effective measures promoted by the company globally, such as cost reduction, inventory reduction, and adjusting production capacity according to demand.
Cummins' cash flow as of the end of 2009 was $930 million, laying a solid foundation for the sustainable development of its business.
Tim Solso, Chairman and CEO of Cummins Inc., said, "Despite the adverse conditions of the global economic crisis in 2009, we still achieved excellent performance. We took effective measures to optimize production capacity at the beginning of the crisis, and the unremitting efforts of Cummins employees worldwide jointly promoted the company to achieve performance goals. Despite the challenges of the most severe economic crisis in recent years, Cummins still achieved solid profit income, obtained healthy cash flow, and continued to focus on investing in key technologies and projects for the future
In addition to achieving robust financial performance, Cummins continued to focus on new initiatives in 2009productThe increased investment in the development field has ensured that Cummins products once again lead the industry in meeting the world's strictest emission regulations and smoothly enter the new product field in China and other growth markets.
Emerging markets represented by China, India, and Brazil have become the driving force behind Cummins' steady growth in performance. These economies have bottomed out and rebounded earlier than other mature markets. Cummins is expected to achieve better performance in the Chinese, Indian, and Pakistani markets in 2010. Meanwhile, due to the impact of EPA2010 emission regulations, the US market for vehicles in the fourth quarterlaunchmachineThe sales of components and products have also significantly increased.
Cummins expects its sales and revenue in 2010 to remain the same as in 2009. The company predicts a sales revenue of $11 billion in 2010, with an EBIT yield of 7%. Cummins is expected to achieve stable financial revenue and cash flow in 2010, and continue to invest in key products and technology areas, laying the foundation for the company's long-term sustainable development.
Send your inquiry directly to us
