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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCummins Inc.'s profit jumped 33 percent in the first quarter due to strong demand for its engines in the North American market, the Columbus-based manufacturer said Tuesday morning.
Profit rose to $455 million, or $2.38 cents per share, compared to $343 million, or $1.75 per share, in the same quarter a year ago.
The company’s earnings came from $4.5 billion in sales, a 16-percent increase over the same quarter in 2011.
Cummins' results beat analyst expectations of $2.22 per share and $4.4 billion in revenue.
The company has seen double-digit year-over-year percentage growth in revenue for five straight quarters, it said. Earnings have risen in three straight quarters.
Cummins said its growth was driven by higher demand in truck, power-generation and construction markets in North America. The company also saw growth in global mining markets.
Cummins said that growth offset weaker demand in the Brazilian truck market, Chinese construction market, and the European construction and power-generation sectors.
"Cummins continues to benefit from its geographic diversification and its leadership position in a number of end markets as evidenced by our very strong first quarter results," Cummins CEO Tom Linebarger said in a prepared statement. “Revenues in North America grew 40 percent in the first quarter, offsetting near-term softness in some emerging markets."
Cummins also affirmed its 2012 revenue forecast of 10-percent growth for the year.
The engine maker reported quarterly financial results before markets opened Tuesday.Cummins stock closed Monday at $115.83 per share.
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