Cummins (CMI US) Q1 earnings in line with QMG view

Company: Cummins (CMI US)

QMG product view: US29.11 – Producers of engines & turbines excl. aircraft & vehicle engines and US34.3 – Producers of parts for motor vehicles & their engines

Event: Q1 15 Results

Highlights:

  • Revenue: $4.7bn: +7% yoy – North America revenues +17% however International sales -6%
  • EBIT: Increase to $562m (11.9% of sales) from $528m (12.0% of sales) yoy
  • Cummins expects full year 2015 revenues to grow between 2 to 4%

QMGI comment:

Cummins continues to reflect our the positive data observations for producers of engines and turbines (US29.11) and producers of parts for motor vehicles and engines (US34.3) product groups. Margin performance within engines and turbine production group is the strongest (+695bps in March – up on February 636bps). Consensus estimates see growth of 2.72% on the quarter, in line with QMG: 18.58% (US29.11) and 6.64% (US34.3). We retain our positive view on Cummins in our focus list.

 

QMG Sales – US29.11 – Producers of Engines and Turbines and US34.3 Producers of parts for Motor Vehicles and Engines

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