Before we start, please note that some of the information that you will hear or be given today will consist of forward-looking statements within the meaning of the Securities Exchange Act of 1934. Such statements express our forecasts, expectations, hopes, beliefs and intentions on strategies regarding the future. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of risks and uncertainties. More information regarding such risks and uncertainties is available in the forward-looking disclosure statement in the slide deck and our filings with the Securities and Exchange Commission, particularly the Risk Factors section of our most recently filed annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.During the course of this call, we will be discussing certain non-GAAP financial measures, and we refer you to our website for the reconciliation of those measures to GAAP financials. Our press release with the copy of the financial statements and a copy of today's webcast presentation are available on our website at www.cummins.com under the heading of Investors and Media. With that out of the way, we will begin with our Chairman and CEO, Tom Linebarger. N. Thomas Linebarger Thank you, Mark. Good morning, everyone. I will summarize our first quarter results and comment on the outlook for our key markets. Pat will then take you through more details of our first quarter financial performance and provide an update on our full year guidance. We delivered very strong results in the first quarter. Revenues were $4.5 billion, an increase of 16% over the first quarter of 2011. Three of our 4 businesses reported higher revenues than a year ago, with the Components business achieving record revenues. First quarter EBIT was $658 million, an increase of 24% over the same period last year, continuing our trend of growing earnings faster than sales.
Both revenues and EBIT represent a new first quarter record. We delivered incremental EBIT margin of 21%, consistent with our plan to meet our long-term targets. EBIT percentage for the first quarter was 14.7% with the Engine and Components businesses delivering record EBIT percentage. The Distribution business delivered significant improvement in EBIT percentage from the fourth quarter levels, due to better mix and lower costs. EBIT percent in our Power Generation business also improved from the fourth quarter, despite a drop in revenues of $140 million. Based on the improvements we saw in the first quarter, we remain confident that EBIT margins for both the Distribution and Power Generation businesses will improve during the remainder of the year. We are maintaining our full year guidance for the company of revenue growth of 10% and EBIT margins of 14.5% to 15% of sales.In the first quarter, we saw mixed economic conditions across our markets. And although our guidance for the full year remains unchanged, our outlook has changed in some markets. Overall, demand for our products has increased in North America, in heavy, medium and light duty on-highway markets and in the construction market, offsetting weaker-than-expected demand in China. We now expect our domestic revenues in China across all end markets and including joint ventures to decline by 5% in 2012 compared to our previous guidance of no change year-over-year. In India, our forecast for revenue growth of 7%, including joint ventures, remains unchanged from our previous guidance. In Latin America, our revenue guidance is also unchanged with a weaker outlook for trucks in Brazil offset by stronger demand in our other businesses. Now let me discuss some of these markets in more detail. Revenues in North America were very strong, increasing 40% from a year ago. The Engine and Components businesses delivered strong growth in on-highway markets. We benefited from strong market share for our Engines in the North American heavy-duty truck market in the first quarter, with our share reaching 45% compared to 33% a year ago. We shipped to more than 20,000 15-liter engines to the North American market, setting an all-time record.
Our total Engine shipments to this market, including our 12-liter engine, increased by 118% compared to the first quarter of 2011. Through close cooperation with our OEM partners and strong execution from our manufacturing and supply chain teams, we were able to quickly ramp up our production to meet strong demand for our products. We now expect our market share to reach 40% for the full year, the top end of the range of our previous guidance. And we are maintaining our forecast for the market size for heavy-duty trucks in 2012 at 278,000 units.Read the rest of this transcript for free on seekingalpha.com