Cummins results beat estimates on higher demand for heavy vehicle engines

(Reuters) -U.S. industrial firm Cummins Inc on Tuesday reported better-than-expected quarterly results, helped by robust demand for its diesel and natural gas-powered engines used in heavy vehicles.

Cummins, which benefited from higher demand for trucks amid a boom in the e-commerce sector and a rising preference for personal vehicles, reported a jump of 75% in the engine segment’s sales, its biggest unit.

The company’s large customers PACCAR Inc, Navistar, Daimler AG and Chrysler have also reported strong quarterly results.

Net income for the second quarter ended July 4 rose to $600 million, or $4.10 per share, from $276 million, or $1.86 per share, a year earlier. Analysts on average had expected a profit of $4.05 per share, according to Refinitiv IBES data.

Columbus, Indiana-based Cummins’ net sales rose 58.6% to $6.11 billion, its highest since 2019 and above analysts’ expectations of about $6 billion.

The company also said it was exploring options for its filtration unit, which generated sales of about $1.2 billion in 2020.

Shares of Cummins were up 1.7% in premarket trade.

Reporting by Abhijith Ganapavaram in Bengaluru; editing by Vinay Dwivedi