Cummins Reports Higher 3Q Profit, Boosts Outlook
Cummins Inc. reported higher third-quarter income on a strong North American market, and the company boosted its revenue outlook for the full year.
The engine maker’s net income rose to $423 million, or $2.32 a share, from $355 million, or $1.90, a year ago. Revenue for the quarter ended Sept. 28 rose 15% to $4.89 billion.
Engine sales rose 13% to $2.8 billion, and that segment’s earnings before interest and taxes increased to $330 million from $272 million a year ago.
Columbus, Indiana-based Cummins said it expects its full-year revenue to rise between 10% and 12%, up from its previous 8%-to-11% forecast, due to stronger demand in North America.
Its power generation unit’s results improved in the quarter, but global demand for power generation equipment remains weak, Cummins said, adding that it is planning to reduce costs in that sector that “could range from $15 million to $40 million” in the fourth quarter.
