Cummins Posts $777 Million Tax Charge But Beats Estimates -- Earnings Review
By Cara Lombardo
Cummins (CMI) reported its fourth-quarter earnings Tuesday. Here's what you need to know:
REVENUE: Revenue increased 22% to $5.5 billion, more than the $5.2 billion analysts polled by Thomson Reuters expected. Sales in its components segment jumped 32%, while sales in its power-systems segment rose 18%. Engine and distribution unit sales both increased 16%.
LOSS DUE TO TAX LAW: The industrial-equipment manufacturer reported a net loss of $274 million, or $1.65 a share. Excluding $777 million in charges related to the new tax law, the company earned $503 million or $3.03 a share. Analysts expected adjusted earnings of $2.67 a share.
TAX WATCH: The $777 million charge included an increase in taxes on non-U.S. earnings of $298 million and $331 million of withholding taxes on foreign earnings.
GUIDANCE: The Ohio-based company expects 2018 revenues to increase by 4% to 8%.
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(END) Dow Jones Newswires
February 06, 2018 08:11 ET (13:11 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.