Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowShares of Columbus-based engine maker Cummins Inc. shot up 4 percent in Tuesday morning trading despite a reported 11-percent dip in profit for its second quarter.
Cummins posted earnings of $414 million for the quarter, or $2.20 per share, as compared with $465 million, or $2.45 per share, in the same quarter of 2012.
Revenue increased 2 percent, from $4.45 billion in the second quarter of 2012 to $4.52 billion this year. The most recent quarter’s revenue also marked a 13-percent improvement, from $3.92 billion in the first quarter of 2013. Profit for the first quarter was $282 million.
“Revenues increased primarily due to higher demand in North America, helped by market-share gains in the medium-duty truck market,” CEO Tom Linebarger said in a company release. “I am pleased with our execution this quarter and profitability improved significantly from first-quarter levels.”
Based on its current forecast, Cummins expects full-year revenue to be flat, compared with revenue of $17.3 billion in 2012.
Since the end of the second quarter, Cummins has increased its dividend 25 percent, to 62.5 cents per share. It will be payable Sept. 3 to shareholders of record on Aug. 22.
Shares of Cummins jumped 4 percent in mid-morning trading Tuesday, to about $121 per share.
Please enable JavaScript to view this content.