(Reuters) -Strong commercial vehicle demand propelled U.S. truck engine maker Cummins Inc to raise its full-year revenue forecast, following economic recovery from easing pandemic-related border restrictions on goods movement.
Cummins, which focuses on heavy-duty trucks, is expected to benefit from U.S. President Joe Biden’s massive $2 trillion infrastructure plan that includes building and repairing roads, bridges, mass transit, schools and other infrastructure.
Chief Executive Officer Tom Linebarger, however, says “the shortage of key components such as semiconductor chips has been the primary challenge with adverse weather conditions impacting the United States, and bottlenecks in global logistics further adding to order backlogs”.
Cummins now expects 2021 revenue to be up between 20% and 24%, from its previous forecast of 8% to 12%.
Net income attributable to Cummins was $603 million, or $4.07 per share, in the first quarter ended April 4, compared with $511 million, or $3.41 per share, a year earlier.
Sales in the engine business rose 14% to $2.46 billion, while net sales rose 21.5% to $6.09 billion.
(Reporting by Shreyasee Raj in Bengaluru; Editing by Shinjini Ganguli)
