(Adds comments from conference call)
July 28 (Reuters) - Shares of Cummins Inc rose almost 4 percent after the diesel engine maker reported a rise in quarterly revenue, boosted by distributor acquisitions in North America and stronger demand in truck and bus markets.
Total revenue increased to $5.02 billion in the second quarter from $4.84 billion in the same period last year.
Cummins’ revenue from North America jumped 12 percent in the quarter, while international sales fell by 6 percent, dragged lower by a weak economy in Brazil.
Net income attributable to Cummins rose to $471 million, or $2.62 per share, from $446 million, or $2.43 per share, a year earlier.
Cummins expects full-year 2015 revenues to grow between 2 percent and 4 percent.
On a conference call following the earnings release, Cummins executives said the company hoped to get market share in China to 17 percent by 2018, with a “stretch goal” of 25 percent.
Second-quarter revenues in China, including joint ventures, increased 6 percent year-over-year to $960 million, the company said.
“The growth was driven primarily by stronger sales of new engines and components in our highway markets, which more than offset very weak market conditions,” Chief Executive Tom Linebarger said.
Cummins has had a presence in China for over 30 years, with several products featuring on and off-highway vehicles and strong relationships with original equipment manufacturers (OEMs).
Cummins’ executives said they recognized that the Chinese economy had slowed, but still see sales in China growing to $3.5 billion this year, up from $3.3 billion in 2014.
Second-quarter sales rose in all four of Cummins’ major segments. In engines, strong demand for on-highway, or trucks and buses, drove sales growth, which was offset by weaker demand in global industrial markets and lower truck demand in Brazil.
Growth in the distribution segment included a $14 million gain from North American acquisitions, while a stronger dollar hurt the segment’s sales by 6 percent.
Higher sales in components and power generation were driven by demand in international markets.
Cummins shares rose $4.72, or 3.8 percent, to $128.50 on the New York Stock Exchange. (Reporting by Meredith Davis; Editing by Paul Simao)