US manufacturer of diesel, gas and hybrid engines for trucks, buses and other types of automotive equipment Cummins Inc. has cut its net profit by more than 2.4 times in the first quarter, while the per share figure was significantly higher than analysts’ expectations.
According to the company’s press release, its net income in the January-March quarter was $824 million, or $5.96 per share, compared to $1.993 billion, or $14.03 per share, in the same period a year earlier.
This significant difference in earnings is due to Cummins recording a one-time gain of $1.3 billion in the first quarter of 2024 in connection with the spin-off of its Atmus filter business.
Revenue in the quarter declined 3% to $8.174bn.
Analysts surveyed by FactSet on average estimated the company’s earnings at $4.85 per share and revenue at $8.18bn.
The company withdrew its full-year forecast because of economic uncertainty. Previously, it had forecast revenue growth of minus 2% to plus 3% in 2025 and an EBITDA margin of 16.2-17.2%.
Cummins’ stock price is up 1.8% in Monday trading. Since the beginning of the year, the market value of the company fell by 12.4% to $41.3 billion.