Diesel engine maker Cummins Inc. said Tuesday its fourth-quarter profit rose from a year ago as sales jumped 22% and that 2010 was the strongest year in its history.
Cummins earned $362 million, or $1.84 a share, up from $270 million, or $1.36, a year earlier. Sales rose to $4.14 billion from $3.40 billion,
Its engine, components and distribution segments all reported record sales and earnings before interest and taxes.
For the full year, Cummins earned $1.04 billion, or $5.28 per share, up from $428 million, or $2.16 per share, in 2009. Sales rose 22% to $13.23 billion.
Sales for 2010 sales were second only to 2008, while its full-year profit and EBIT set company records. Three of its four business segments — engine, components and distribution — set full-year record earnings.
Cummins projected its engine and components sales will grow 25% this year, led by a recovery in the North American truck market.
Total engine sales worldwide rose 15% to $2.5 billion, though on-highway engine sales slipped 18% as North American medium-duty truck engine sales fell 42%. Overall medium-duty truck engine sales rose 11% on the strength of Brazilian truck market.
Global heavy-duty truck engine sales for the fourth quarter declined 45% as result of continued weakness in North America, Cummins said.
