Engine manufacturer Cummins made seven percent more money in the second quarter of 2014 than in the same quarter last year, due in part to higher on-highway demand in North America, the company reported.
Cummins posted revenues of $4.8 billion, a seven percent increase over last year, driven by stronger demand in on-highway markets and distributor acquisitions in North America.
"Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets. Our components business delivered very strong results in the second quarter generating record sales and profits," said Chairman and CEO Tom Linebarger.
Cummins’ profit in Q2 2014 was $446 million, or $2.43 per diluted share, compared to $414 million, or $2.20 per diluted share, in Q2 2013, a 7.7-percent gain.
Revenues in North America increased 14 percent while international sales dropped by one percent compared to Q2 2013. Within international markets, lower revenues in Mexico, Brazil and India offset stronger demand in China.
Based on the current forecast, Cummins said it expects full year 2014 revenues to grow between eight and 11 percent, up from its previous forecast of growth of between six and 10 percent, due largely to improving demand in North America.
