(Reuters) – US truck engine manufacturer Cummins Inc on Tuesday reported revenue and fourth -quarter profits and profit above Wall Street estimates on strong demand for its power generation products, sending the company's shares up 3.5% before the bell.
The artificial intelligence race among major technology giants has led to a surge in power demand from data centers running AI language models, boosting sales for power solution providers.
The increase in energy requirements led to double digit sales growth for Cummins distribution and power systems segments, which are involved in the sale and maintenance of power generators.
However, the company expects annual sales to deteriorate as the recovery at the North American Heavy Duty Trucks Market remains sluggish.
The machinery industry is currently facing an oversupply of equipment and reduced demand, but analysts believe the trucing sector will be the first to stabilize.
“In 2025, we anticipate that demand will be slightly weaker in truck markets on the North American General, especially in the first half of the year, but is offset by strength in other key markets,” said Cummins CEO Jennifer Rumsey, in a statement.
The Indiana company predicts that its revenue 2025 will be within a range of 2% down and up 3%. Analysts expected a growth of 1.72%, according to data compiled by LSEG.
For the quarter ending on December 31, Cummins identified a net income of $ 418 million, or $ 3.02 per share, which included $ 312 million in payments of re -organizing its new power unit, Accelera.
With the exception of these charges, the engine manufacturer won $ 5.14 the share, exceeding the analyst's estimates of $ 4.68 of the share.
Net sales came in at $ 8.45 billion, compared to estimates of $ 8.07 billion.
(Reported by Raechel Thankam Job; Edited by Shailesh Kuber)