EPA Deal Hurt Cummins' 1998 Profits

February 18, 1999 9:28 AM, EST

Cummins Engine Co. reported higher sales but lower profits in the fourth quarter of 1998 and a loss for the year.

Total sales rose due to the acquisition of Nelson Industries, but the company noted that earnings were hurt by:

LI> Higher product introduction costs.

Restructuring costs.

Special charges related to warranty programs.

A settlement with the Environmental Protection Agency.

Cummins earned $29 million (75 cents a share) and posted sales of $1.61 billion in the three months that ended Dec. 31, compared with net income of $64 million ($1.66) and sales of $1.56 billion in 1997.

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