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February 13, 2017 2:45 AM, EST
Equipment Suppliers Post Quarterly Gains
John Sommers II for TT

This story appears in the Feb. 13 print edition of Transport Topics.

Equipment manufacturers and diversified suppliers reported mostly stronger fourth-quarter results.

Independent engine maker Cummins Inc. reported net income for the period ended Dec. 31 jumped to $378 million, or $2.25 per share, compared with $161 million, or 92 cents, a year earlier. That reflects $361 million less in loss contingency, impairment and restructuring charges compared with a year earlier.

Revenue was $4.5 billion, down 6% from the same quarter in 2015, largely reflecting lower commercial truck production in North America and weak global demand for industrial engines and power generation equipment, the Columbus, Indiana-­based manufacturer said Feb. 9.

It shipped 18,500 heavy-duty engines in the quarter, down from 24,300 a year earlier, the company said. Medium-duty shipments were 58,000, down 1,700 engines from a year earlier.

“Despite weak conditions in a number of our largest markets, Cummins delivered fourth-quarter results that were a little better than expected due to our strong market share in on-highway markets in North America and the benefits of our cost- reduction work,” CEO Tom Linebarger said.

The Environmental Protection Agency also has certified Cummins’ full range of heavy- and medium-duty diesel engines as meeting the 2017 greenhouse-gas emissions standard, the company said.

Year-to-date, net income was $1.39 billion, or $8.23, compared with $1.4 billion, or $7.84, in 2015. Revenue was $17.5 billion, 8% lower than in 2015, Cummins said.

Allison Transmission Holdings Inc., the largest global provider of commercial-duty fully automatic transmissions, reported net income of $61 million, or 36 cents per diluted share, compared with $13 million, or 8 cents, for the 2015 period.

Allison Chairman and CEO Lawrence Dewey related the net income increase to “stronger than anticipated demand conditions in North America off-highway service parts and global on-highway products.”

Sales dipped 2% to $469 million, compared with $478 million in the same period in 2015.

One analyst said Indianapolis-­based Allison was poised for prolonged growth.

“Given revenue tailwinds across the business, we expect a multiyear growth cycle to emerge for the first time as a public company,” Robert W. Baird & Co. analyst David Leiker wrote in a note.

Year-to-date, net income was $215 million, or $1.27, compared with $182 million, or $1.03, on sales of $1.84 billion, down from $1.98 billion a year earlier.

Meanwhile, components supplier Dana Inc. saw fourth-quarter net income surge as a result of a tax benefit as revenue rose 5% compared with the 2015 period.

Net income was $489 million, or $3.34 per share, compared with a net loss of $79 million, or 54 cents, in the fourth quarter of 2015.

The 2016 results included a $490 million tax benefit compared with a tax expense of $92 million in the same period of 2015, Dana said.

Sales totaled $1.45 billion, compared with $1.38 billion in same period of 2015. Benefits from the stronger global light-vehicle market were partially offset by weaker demand in the commercial-vehicle and off-highway markets, the Maumee, Ohio-based company said Feb. 9.

Net income for the full year was $653 million, or $4.38, compared with $180 million, or $1 per share, in 2015.

Sales were $5.8 billion, $234 million lower than 2015, primarily due to unfavorable currency translation, Dana said.

In addition, electronics sup­plier Delphi Automotive, a United Kingdom-­based company, reported its net income, according to U.S. generally accepted accounting principles, for the period ended Dec. 31 rose to $281 million, or $1.03 per diluted share, compared with $199 million, or 70 cents, in the 2015 period.

“Our strong organic growth and bookings demonstrate that our portfolio of market-relevant advanced technologies is meeting changing industry needs,” Delphi CEO Kevin Clark said.

Sales reached $4.3 billion, up 11% from a year earlier, said Delphi, whose U.S. operation (its largest) is based in Troy, Michigan.

For the full year, net income slipped to $1.15 billion, or $4.21, compared with $1.18 billion, or $4.14. Revenue climbed 8% to $16.7 billion, the company said.