On February 13, 2017, it was learned from Cummins China that Cummins Inc. (NYSE: CMI) announced its fourth quarter and full year 2016 results. Cummins' sales revenue in 2016 was $17.5 billion, down 8% year-on-year. The company's full-year net profit was $1.39 billion, which was the same as in 2015. The wood pellet making machine is our patent product. It is vertical ring die type. It can make biomass pellets from various materials. Its design is mature and reliable. By Wood Pellet Machine, raw material is feeding vertically and directly in place, with stationary die and moving roller, the material is centrifugal and spread evenly around the die. The independent ejection device ensures the forming rate of pellet, the good design lowers the consumption and enhances the efficiency. It can work 24 hours and lubricate automatically. More than 200 wood pellet lines in and abroad have adopted this machine. Wood Pellet Making Machine,Wood Biomass Pellet Making Machine,Wood Pellet Making Mill Machine,Wood Pellet Making Mill Shandong Kingoro Machinery Co., Ltd , https://www.kingoromachinery.com
Fourth Quarter 2016 Results Cummins' sales in the fourth quarter of 2016 decreased by 6% year-on-year to US$4.5 billion due to declining production in the North American truck market and weak demand for global industrial engines and power products. The 2% decline was due to the adverse effect of the US dollar exchange rate on sales revenue calculations. The North American market saw a significant year-on-year decline, with sales revenue down 13%. Due to the contribution of China's regional performance, international market revenue increased by 6% year-on-year.
Cummins achieved a net profit of $378 million (diluted earnings per share of $2.25) in the fourth quarter of 2016, compared to $161 million in the same period in 2015 (diluted earnings per share of $0.92). In the fourth quarter of 2016, Cummins Earnings before interest and taxes was $526 million, and the EBIT yield was 11.7%, while the EBIT before the tax was $230 million, and the yield was 4.8%.
“Although demand remained weak in several of the largest markets, Cummins still achieved good results in the fourth quarter. Thanks to the market share in North America and our strong initiatives in cost control, our performance was better than expected. To be slightly improved,†said Tom Linebarger, Chairman and CEO of Cummins Inc., “Some key initiatives implemented by the company in 2016 have helped us make significant progress. This includes: executive restructuring, completion of distributors to North America The acquisition and continued investment in new products have all laid a solid foundation for Cummins to achieve profitable growth in the future market situation."
2016 Annual Results Cummins' 2016 sales revenue was $17.5 billion (excluding non-controlling joint venture sales), down 8% year-on-year. Sales in the North American market decreased by 12%, and revenue in the international market fell by 2%. If the exchange rate factor is deducted, the international market will grow by 2%, mainly due to the growth of the Chinese and Indian markets, which partially offset the weakness of the Latin American, Middle Eastern and African markets. In 2016, Cummins' joint ventures in China achieved a total sales revenue of US$4 billion, a record high. This is mainly due to the growth of the truck and construction machinery market, as well as the rise in parts and components such as emission treatment systems.
Cummins' full-year net profit for 2016 was $1.39 billion (diluted earnings per share of $8.23), and net profit for 2015 was $1.4 billion (diluted earnings per share of $7.84). Excluding impairment and restructuring charges, net income for 2015 was $1.59 billion (diluted earnings per share of $8.93).
In 2016, Cummins' interest before interest and taxes was $2 billion, and the EBIT was 11.4%. In 2015, the income before interest and taxes was 2.1 billion US dollars, and the yield was 12.5%.