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Columbus, Indiana-based Cummins Inc. saw its revenue drop slightly in the first quarter, but its profit increased sharply because of one-time gains from the spinoff of its filtration business.
In its first quarter financial report, released Thursday, the manufacturer reported revenue of $8.4 billion, down 1%, from $8.5 billion, in the first quarter of 2023.
Quarterly profit reached $2 billion, or $14.03 per share, compared with $790 million, or $5.55 per share, a year earlier. The most recent quarter’s profits included a one-time gain of $1.3 billion, or $9.08 per share, related to the company’s spinoff of its filtration business, Tennessee-based Atmus Filtration Technologies Inc. Atmus is now a standalone public company.
The Atmus separation was complete in March. It took the form of a share exchange offer in which shareholders were offered the opportunity to exchange their shares of Cummins common stock for shares of Atmus.
A consensus of analysts had expected Cummins to post $8.5 billion in first-quarter revenue and $5.13 per share in profit.
Looking ahead, Cummins reiterated its previous full-year guidance for a revenue decline in the range of 2% to 5% compared with 2023. But the company said the prediction actually represents a brighter outlook than previously expected, because past guidance assumed that Atmus would be included in Cummins’ results for the full year.
“Stronger demand in our base business has offset the removal of Atmus,” Cummins Chair and CEO Jennifer Rumsey told analysts during an earnings call Thursday morning.
Shares of Cummins were trading at $275.76 each Thursday morning, down 3% from Wednesday’s closing price.
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