(Reuters) – U.S. truck engine maker Cummins Inc missed Wall Street estimates for first-quarter sales on Thursday, dragged down by waning demand in China and weak freight activity.
The company has struggled with a slow recovery in freight activity from a post-pandemic slump and sluggish demand in key regions such as China and Europe.
“We do still expect slowing demand in some of our key markets in the second half of the year” CEO Jennifer Rumsey said in a statement.
Shares of the company were down 2% in morning trading.
The Indiana- based company reported first-quarter revenue of $8.40 billion, missing analysts’ estimates of about $8.50 billion.
Net income for the three months ended March 31 rose to about $2.0 billion, or $14.03 per diluted share, from $790 million, or $5.55 per diluted share, in 2023, aided by gains from completing the separation of its filtration business Atmus.
The company maintained its forecast of 2% to 5% decline in 2024 revenue. The earlier expectation included the financial results of Atmus.
(Reporting by Raechel Thankam Job; Editing by Sriraj Kalluvila)
