Today, Cummins announced our performance from the second quarter of 2013. Company revenues increased as compared to the first quarter in 2013 and as compared to the same period last year. With respect to profits, Earnings before interest and taxes (EBIT) have improved this quarter since the first quarter of 2013 but are down as compared to the same period last year.
The second quarter revenues of $4.5 billion is up two percent from last year’s results during Q2. Our revenues in North America increased by seven percent as well as growth in Brazil and China.
EBIT were $621 million or 13.7 percent of sales. EBIT represents all profits before deducting for interest payments and income taxes. An important factor contributing to the widespread use of EBIT is the way in which it nulls the effects of the different capital structures and tax rates used by different companies. By excluding both taxes and interest expenses, the figure focuses in on a company’s ability to profit and makes for easier comparisons between companies.
“Revenues increased primarily due to higher demand in North America, helped by market share gains in the medium duty truck market,” said Chairman and CEO Tom Linebarger. “I am pleased with our execution this quarter and profitability improved significantly from first quarter levels. The recent increase in our dividend, coupled with our ongoing share repurchase program, underscore our confidence in the Company’s future.”
Highlights from Q2:
- Cummins increased its dividends by 25%
- Cummins was named one of the Top 50 companies for diversity by DiversityInc for the seventh consecutive year