Engine-maker Cummins Inc. swung to a net loss in the fourth quarter of 2017 as tax changes in the U.S. outweighed revenue growth across its business segments.
Net loss attributable to Cummins came in at $274 million, or $1.65 per share, in the quarter ended Dec. 31, 2017, compared to year-ago profit of $378 million, or $2.25 per share.
Full-year net attributable income declined to $999 million, or $5.97 per share, in 2017, from $1.39 billion, or $8.23 per share, in 2016.
The results included $777 million in one-time charges related to the U.S. Tax Cuts and Jobs Act, which negatively impacted fourth-quarter and full-year EPS by $4.68 and $4.65, respectively.
Excluding the tax reform impact, Cummins earned $503 million, or $3.03 per share, in the fourth quarter, and $1.78 billion, or $10.62 per share, in full-year 2017.
Total net sales increased to $5.48 billion in the 2017 fourth quarter from $4.50 billion a year earlier. Engine segment total sales rose 16% to $2.29 billion, distribution segment total sales increased 16% to $1.94 billion, components segment total sales jumped 32% to $1.56 billion, and power systems segment total sales climbed 18% to $1.10 billion.
Increased global demand in the truck and construction markets boosted engine segment revenue during the quarter, while higher commercial truck production in North America and China helped drive sales growth in its components segment. The power systems segment was boosted by greater demand in mining, oil and gas, and power generation markets.
"We expect demand to remain strong in many of our core markets in 2018 and profitability to improve as a result of higher sales and continued execution of our cost reduction initiatives," said Cummins Chairman and CEO Tom Linebarger.
The company expects revenue to grow between 4% and 8% in 2018. Full-year 2017 revenue rose 17% to $20.43 billion from $17.51 billion in 2016.
