(Reuters) - U.S. truck engine maker Cummins Inc (NYSE:CMI) on Tuesday raised its full-year 2023 revenue forecast, on the back of strong demand for parts across its markets.
Supply chain issues, which led to a fall in production of new trucks, have forced truckers to keep their ageing fleet on roads for longer, which in turn has increased the demand for aftermarket parts and services.
Indiana-based Cummins now expects full-year 2023 revenue to be up 15% to 20% compared with the previous forecast of between 12% and 17%.
"We are delivering cycle-over-cycle improvement in financial performance despite persistent supply chain constraints," said Chief Executive Officer Jennifer Rumsey.
Cummins also raised revenue expectations from its Meritor (NYSE:MTOR) business, which it acquired last August, to between $4.7 billion and $4.9 billion for 2023, up from the previous forecast of $4.5 billion to $4.7 billion.
The truck engine maker, which manufactures products such as diesel, electric and hybrid powertrains reported a first-quarter net income of $790 million, or $5.55 per share, compared with $418 million, or $2.92 per share, a year earlier.
The company also posted quarterly revenue of $8.45 billion compared with $6.4 billion a year earlier, and above analysts' expectations of $8.10 billion, according to Refinitiv Data.