Cummins Inc. Sales Revenue Down 8% YoY in 2016
Fourth quarter 2016 results Due to the declining output of the North American truck market and the weak demand for global industrial engines and power products, Cummins' sales revenue in the fourth quarter of 2016 decreased by 6% year-on-year to US$4.5 billion. The 2% decline comes from the negative impact of the dollar exchange rate fluctuation on sales revenue calculations. The North American market saw a significant year-on-year decline and sales revenue decreased by 13%. Due to the contribution of China's performance, the international market revenue increased by 6% year-on-year. In the fourth quarter of 2016, Cummins achieved a net profit of US$378 million (dilution of US$2.25 per share), compared with US$161 million in the same period of 2015 (dilutive earnings per share of US$0.92). In the fourth quarter of 2016, Cummins’ pre-tax income was 526 million U.S. dollars, and EBIT was 11.7%, compared with EBIT before the same period of last year of US$230 million, and the rate of return was 4.8%. “Despite weak demand in several of the largest markets, Cummins still achieved good results in the fourth quarter. Thanks to the North American market-leading market share and our strong measures in cost control, our performance was better than expected. There is a slight improvement,†said Tom Linebarger, Cummins' chairman and chief executive officer. “Some key initiatives implemented by the company in 2016 have helped us achieve significant progress. This includes: executive restructuring, completion of distributors in North America. The acquisition and continued investment in new products, all these efforts laid a solid foundation for Cummins to achieve profitable growth after future market conditions have improved." 2016 Annual Results Cummins' sales revenue in 2016 was US$17.5 billion (excluding non-controlling joint-venture sales), which was down 8% year-on-year. North American market sales decreased by 12%, and international market revenue fell by 2%. If the exchange rate factor is deducted, the international market achieves a growth rate of 2%, which is mainly due to the growth of the Chinese and Indian markets. The growth of these regions partially offset the weakness of the Latin American, Middle East and African markets. In 2016, Cummins’ joint ventures in China achieved a total sales revenue of US$4 billion, a record high. This was mainly attributable to the growth of the truck and construction machinery market, as well as the increase in parts and components business such as emission treatment systems. Cummins’ full-year 2016 net profit was $1.39 billion (dilutive earnings per share of $8.23), and its net profit in 2015 was $1.4 billion (dilutive earnings per share of $7.84). Excluding impairment and restructuring charges, net income in 2015 was $1.59 billion (dilutive earnings per share of $8.93). In 2016, Cummins’ pre-tax income was US$2 billion, and the EBIT yield was 11.4%. The EBIT before 2015 was 2.1 billion U.S. dollars and the yield was 12.5%. 2017 expectations Based on current expectations, Cummins revenue will decline by approximately 5% in 2017, and EBIT will be between 11-11.5%. Market conditions in the first quarter will remain extremely challenging and will be the trough of the year. We own our bags production line to supply for our factory ,and now we open the marketing to sell bags to outside .can supply the different bags .25KG ,50KG OR BIG BAGS .with UV Treated Bags ,or PE liner Woven Bags ,High tensile strength, falls and friction. Dimensional stability. A good surface for print tasks. UV-protection treatment if required. Food contact compliance Big Bag,Sacos Big Bag,Bag Big,Big Bang Theory MIDI FEED BIOTECH LIMITED , https://www.midifeed.com
Cummins Inc. Sales Revenue at $17.5 Billion in 2016