Cummins Inc. saw its net income decrease in the third quarter as lower demand for capital goods caused revenue to drop.
Profit attributable to Cummins was $355 million, or $1.90 a share, compared with $414 million, or $2.20 a share, in the third quarter of 2012, the engine maker said in an Oct. 29 statement. The figures exclude operations for which Cummins does not have a controlling interest.
Sales fell 5.7% to $4.3 billion, Cummins said. Revenue in North America grew 11%, but it fell 4% in the rest of the world, with positive results from China and Brazil offset by poor demand in India, Australia and Europe.
“Revenues were below our expectations as we continue to face an environment of weak demand for capital goods in most of our major markets,” Cummins Chairman and CEO Tom Linebarger said in the statement. “Our focus on lowering costs in all parts of our business positions us well to deliver strong earnings growth as market conditions improve.”