Engine maker and power systems provider Cummins Inc. reported record second-quarter revenue thanks to the full integration of Meritor Inc. But a key earnings measure fell because Meritor’s gross margin percentage trails its new parent.
By the numbers, Cummins reported:
Cummins acquired Meritor for $3.7 billion in 2022. The company expects Meritor to contribute $4.7 billion to $4.9 billion in revenue this year. It projects EBITDA between 10.3% and 11%, lower than the overall company.
“While we see demand remaining strong through 2023 and we are maintaining our guidance on revenue and profitability, we continue to closely monitor global economic indicators,” Jennifer Rumsey, Cummins chair and CEO, said in a news release.
“Should economic momentum slow, Cummins will remain in a strong position to keep investing in future growth, bringing new technologies to customers as we advance our Destination Zero strategy, and returning cash to shareholders.”
Cummins shares (NYSE: CMI) traded 9% lower before markets opened Thursday..
This is a developing story.
The post Cummins reports higher Q2 sales and income appeared first on FreightWaves.
Source: freightwaves - Cummins reports higher Q2 sales and income
Editor: Alan Adler