February 6, 2018 / 12:50 PM / 6 months ago

Cummins results beat estimates; forecasts higher 2018 revenue

(Reuters) - Engine maker Cummins Inc (CMI.N) reported better-than-expected results on Tuesday, helped by a stronger U.S. economy which is driving demand for large trucks that haul a majority of freight.

Freight demand had been picking up in the United States for several months on the back of a strengthening U.S. economy, allowing trucking companies to raise freight rates and grow fleets.

Cummins, which counts PACCAR Inc (PCAR.O), Daimler AG (DAIGn.DE) and Navistar International Corp (NAV.N) among its customers, forecast 2018 revenue to be up 4 percent to 8 percent. It sees earnings before interest, taxes, depreciation and amortization in the range of 15.8 percent to 16.2 percent of sales.

EBITDA for 2017 was 15 percent of sales, excluding the impact of U.S. tax reform.

Net loss attributable to Cummins was $274 million, or $1.65 per share, in the fourth quarter ended Dec. 31, compared with a profit of $378 million, or $2.25 per share, a year earlier.

The quarter included $777 million in one-time charges related to tax reform. On an adjusted basis, Cummins earned $3.03 per share topping Wall Street’s estimate of $2.67, according to Thomson Reuters I/B/E/S.

Net sales rose 21.6 percent to $5.48 billion and were ahead of analysts’ average estimate of $5.24 billion.

Reporting by Ankit Ajmera in Bengaluru; Editing by Bernard Orr

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