Latest news with #StephenVolkmann
Reuters
05-08-2025
- Automotive
- Reuters
Cummins beats quarterly revenue estimates on generator demand; tariff concerns linger
Aug 5 - U.S. truck engine maker Cummins Inc (CMI.N), opens new tab on Tuesday reported second-quarter revenue above Wall Street estimates, driven by strong demand for its power generation systems, despite uncertainties surrounding the impact of tariffs. Shares of the company were up about 3% in afternoon trading. The company's power generation products, such as generators, have seen strong demand from AI-driven investments towards data centers. However, it expects North America truck demand to sharply decline in the third quarter, as tariff uncertainties drag new truck orders to multi-year lows. "We view current order levels as unsustainably low, but immediate catalysts for recovery are not yet clear," CFO Mark Smith said on a post-earnings conference call. However, "favorable pricing within light-duty markets continued to benefit margin performance within engines," according to Jefferies analyst Stephen Volkmann. Cummins declined to reinstate its full-year revenue forecast, withdrawn last quarter, stating it has not yet felt the full impact of tariffs, with their duration and scale still uncertain. The company added it has worked to offset tariff impacts and expects to be near price-cost neutral by the fourth quarter, despite a hit to its second-quarter profitability. Its power systems segment revenue rose 19% to $1.89 billion in the quarter, while the components segment fell 9% and the engine segment declined 8%. Cummins posted second-quarter revenue of $8.64 billion, as compared to $8.8 billion a year earlier. Analysts, on average, had expected $8.44 billion, according to data compiled by LSEG. The Indiana-based company reported a net income of $890 million or $6.43 per share, compared to $726 million or $5.26 per share a year ago.
Time of India
01-07-2025
- Automotive
- Time of India
Parker-Hannifin expands electric vehicle portfolio with $1bn acquisition of Curtis Instruments
Motion and control products maker Parker-Hannifin on Monday said it has agreed to buy Curtis Instruments from power generation systems company Rehlko for $1 billion, expanding its portfolio of technologies used in electric and industrial vehicles. Curtis Instruments designs and manufactures parts such as motor speed controllers, instrumentation and traction systems for electric and conventional vehicles. The deal complements Parker's electric motor and motion control products . The combined offerings could also be used in forklifts and conveyors in manufacturing plants and in excavators and harvesters used in fields such as construction, agriculture and mining. The New York-based company expects sales of approximately $320 million in FY25. It operates in 16 countries and has manufacturing plants in Puerto Rico, Bulgaria and China. Curtis was acquired in 2022 by privately held Rehlko, then the power segment of manufacturing company Kohler before it was spun off in May 2024. The Milwaukee, Wisconsin-based Rehlko is now majority-owned by private equity firm Platinum Equity. "Parker is an exceptional company and we are confident Curtis will thrive from Parker's increased scale, focus, and investment," Rehlko CEO Brian Melka said. The all-cash deal is expected to close by the end of 2025, Parker said. "While investors may have been searching for an aerospace deal based on the high-growth potential in the end market, we believe the Curtis acquisition could serve a similar purpose in aligning the company's sales mix further toward secular growth theme," Jefferies analyst Stephen Volkmann wrote in a note. The Cleveland, Ohio-based Parker-Hannifin also makes airframe and engine components and aftermarket parts for the commercial aerospace and defense markets; it counts Boeing and Airbus among its customers. Sales in the aerospace segment rose 11.6% to $1.57 billion in the third-quarter ended March 31.
