In This Article:
picture alliance / Contributor / Getty Images
Key Takeaways
-
Cummins on Monday withdrew its 2025 outlook, citing uncertainty about the impact of the Trump administration's tariffs.
-
The vehicle engine maker beat profit and sales estimates in the first quarter.
-
Shares of Cummins have lost about 12% of their value since the start of the year.
Engine maker Cummins (CMI) on Monday withdrew its 2025 outlook, citing uncertainty about the potential impact of the Trump administration's tariffs.
“Due to growing economic uncertainty driven by tariffs we have withdrawn our full year forecast,” CEO Jennifer Rumsey said, adding “we look forward to reinstating our forecast when conditions allow.”
Previously, Cummins had projected a revenue decline of 2% to rise of 3% year-over-year, with earnings before interest, taxes, depreciation, and amortization of 16.2% to 17.2% of sales.
The company posted first-quarter earnings per share of $5.96, down from $14.03 a year earlier but above analysts' estimates compiled by Visible Alpha. While revenue fell 2.7% to $8.17 billion, that also topped expectations.
Sales at the firm’s Distribution, Power Systems, and Accelera units advanced, while they fell at its Engine and Components segments.
Shares of Cummins gained about 2% in recent trading. They've lost about 12% of their value since the start of the year.
TradingView
Read the original article on Investopedia