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$CMI said it will partner with Peterbilt Motors, division of $PCAR, to develop and demonstrate technologies under U.S. Department of Energy (DOE) SuperTruck II program. The DOE will fund 4 projects to develop and demonstrate technologies that more than double freight efficiency of Class 8 trucks, commonly known as 18-wheelers, over 2009 baseline.
$CMI lifted its 2017 revenue growth outlook to 14-15% from 9-11%. Earnings before interest and taxes (EBIT) is expected to be 11.8-12.2% of sales, which is unchanged from the prior forecast except for the inclusion of the impact of the new Eaton Cummins Automated Transmission Technologies joint venture.
$CMI reported a jump in 3Q17 earnings driven by stronger volumes and operational improvements that more than offset increased quality costs. Net income rose to $453MM or $2.71 per share from $289MM or $1.72 per share last year. Revenue climbed 26% to $5.3Bil.
$CMI said it is acquiring the assets of Brammo, Inc., which designs and develops battery packs for mobile and stationary applications. Adding Brammo's battery pack expertise and resources is an important milestone in $CMI's efforts to become a global electrified power leader. This acquisition is expected to close by the end of this calendar year.
$CMI, a manufacturer of power generation systems, along with three other firms in the industry is joining an initiative to roll out buses equipped low-emission technologies in 20 cities around the world. The company is planning to start production of electric powertrains for buses by 2019.
In a bid to reduce greenhouse gas emissions, $CMI has entered into a virtual power purchase agreement with EDP Renewables North America to expand a wind farm in Northern Indiana. This will add 75MW to the existing 600MW capacity at the Meadow Lake Wind Farm complex.
$ETN said the $CMI joint venture will strategically advance its transmission business going forward, and expects the transaction to close in 3Q17. $ETN and $CMI formed a JV for automated transmissions for heavy-duty and medium-duty commercial vehicles. The JV will be named Eaton Cummins Automated Transmission Technologies.
$CMI clarified that the filtration business is not for sale. The company would not link the sale of a division with the need to acquire another business. $CMI added that it would consider selling a part of the company if it believes that division is no longer strategically essential for the company and if it gets a better valuation for that unit.
On the Eaton joint venture, $CMI commented that it is convinced that leading powertrains will be integrated. The company believes that it is getting a leading technology which it can implement and $ETN and $CMI share their cultural values. With this JV, $CMI sees opportunities for growth internationally.
$CMI expects full year 2017 revenues to be up 4-7%, compared to prior guidance of flat to down 5%. EBIT is projected to be in the range of 11.75-12.5% of sales, up from 11-11.5%. This guidance excludes the impact of the new JV with Eaton, which is expected to be operational in 3Q17, subject to regulatory approvals.
Engines, filtration, and power generation products manufacturer $CMI reported a jump in 1Q17 earnings, helped by new product launches and higher revenue. Net income attributable to the company increased 23.36% to $396MM or $2.36 per share from $321MM or $1.87 per share a year ago. Revenue increased 6.94% YoY to $4.58Bil.