Cummins Expects to Beat Consensus on Quarterly Earnings
The results would beat current analyst estimates by about five cents, he told shareholders Tuesday at Cummins' annual meeting.
The improved profitability would follow a year when the launch of six new engines and other products raised expenses and sent Cummins' financial results into the red.
The maker of diesel engines for trucks, heavy machinery and other uses reported a loss of $21 million, or 55 cents per share, during 1998 after a profit of $212 million, or $5.48 per share, during 1997. That included a special charge of $125 million for
estructuring and other one-time costs.
"We expect improved earnings in the second quarter as our revenues increase in line with seasonal upturns in our North American markets, and our cost-reduction efforts continue to build momentum," Henderson said.
Cummins shares closed up $1.25 to $38.75 Tuesday on the New York Stock Exchange.
