Cummins Inc. said Tuesday it will boost its stock dividend by 25%, but cut its 2012 sales forecast, citing weaker truck orders.
The diesel engine maker said its full-year revenue will be in line with 2011, at about $4.45 billion, down from a previous guidance of a 10% increase over that level. Cummins does not provide quarterly revenue guidance.
Cummins also said it was boosting its quarterly dividend by 10 cents, or 25%, to 50 cents per share, payable Sept. 1 to shareholders of record as of Aug. 22.
“We have seen demand in some markets weaken recently as growth in the global economy has slowed,” Chairman and CEO Tom Linebarger said in a statement.
“Order trends in the U.S. for trucks and power generation equipment have softened and demand in Brazil, China and India is not improving as we had previously expected,” he said.