Cummins Slashes FY19 Outlook - Quick Facts

(RTTNews) - While reporting financial results for the third quarter on Tuesday, Cummins Inc. (CMI) slashed its revenue growth and EBITDA guidance for the full-year 2019.

For fiscal 2019, the company now projects revenues to decline 2 percent, lower than previous guidance of flat with last year.

The company said the reduction in revenue forecast is driven by lower truck production in North America, India, Brazil, and Europe, as well as lower demand in off-highway markets, including North America construction and global mining markets.

Full year EBITDA is also now expected to be 15.9 to 16.3 percent of sales, compared to prior guidance of 16.25 to 16.75 percent, due to the impact of lower volumes and the acquisition of Hydrogenics.

The company noted that the outlook does not include any potential impact of the company's review of its emission certification process and compliance with emissions standards or expenses associated with executing future cost reduction initiatives.

"Cummins is taking actions to align our cost structure with the lower revenues while maintaining investment in products that will deliver sustainable growth and profitability," said Chairman and CEO Tom Linebarger.