Cummins Reports Record Quarterly Earnings

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iesel engine maker Cummins Inc. reported Thursday that its third quarter was its most profitable ever, posting net income of $145 million or $2.90 per share, compared with $116 million or $2.40 a year earlier.

The earnings exceeded the engine maker’s third-quarter guidance, issued in late September, of $2.40 to $2.50 per share. (Click here for previous coverage.)

Cummins also boosted its earnings guidance for the full year to $10.70 to $10.80 per share, from its previous $10.10 to $10.30 guidance, resulting in revised fourth-quarter guidance of $3 to $3.10 per share.

Sales rose to $2.47 billion, from $2.2 billion in the previous third quarter, slightly below the record $2.49 billion set in the second quarter of this year.

Cummins said it has earned $383 million, or $7.70 a share, in the first nine months of 2005 — more than it earned in all of 2004, its most profitable year ever.

Engine-segment earnings reached a quarterly record $167 million, up 18% over the same quarter a year earlier.

Heavy-duty engine shipments rose 13% worldwide. Engine and parts sales were particularly strong in Europe, Cummins said.