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Cummins expects full-year revenue growth of about 10%, the low end of its previous forecast, after North American pickup-truck demand came in weaker than expected and weighed on third-quarter results. Strength in power-generation equipment helped offset the softness, but Chief Executive Jennifer Rumsey said the truck-demand trend is likely to continue through year-end.
Net sales for the three months ended Sept. 30 rose 13% to $9.44 billion, below the $9.87 billion analysts had modeled. Cummins shares fell 5.1% to $447.95 in premarket trading.
Power-generation equipment remained a bright spot. Rumsey said global demand was exceptionally strong, driven by data-center buildouts. Engine-business sales increased 20% to $3.1 billion, while components sales climbed 23% to $2.9 billion. Cummins also reported sales growth in its distribution and power-systems units.
The gains were partly offset by the Accelera segment, where sales dropped 15% to $103 million. Cummins reported quarterly profit of $1.14 billion, up from $536 million a year earlier. Earnings of $8.25 a share missed analysts’ estimate of $8.28, according to FactSet. The quarter included a 54-cent-per-share benefit from favorable discrete items, including tax adjustments.
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