July 30, 2013 10:50 AM, EDT
Cummins’ 2Q Income Declines

Engine maker Cummins Inc. said Tuesday its second-quarter earnings declined from a year ago, but sales increased on higher demand in the North American medium-duty truck market.

Net income fell to $414 million, or $2.20 per share, from $465 million, or $2.45, a year ago.

Sales rose 2% to $4.5 billion, but engine-segment sales fell 7% to $2.7 billion, Cummins said in a statement.

Engine-segment earnings before interest and taxes fell to $339 million, or 12.8% of sales, from $376 million, 13.2%, of sales, a year ago.

Component sales rose 8% to $1.1 billion, power-generation sales slipped 10% to $814 million and distribution sales rose 1% to $954 million, excluding acquisitions.

Total EBIT for the company was $621 million or 13.7% of sales, compared with $663 million, or 14.9% of sales, a year ago.

Cummins said it expects its full-year revenue to be flat and EBIT to be 13% to 14% of sales.