Cummins Posts Record Sales And Earnings
January 28, 2000
Cummins Engine reported fourth quarter 1999 earnings of $70 million on sales of $1.84 billion -- both records. Earnings excluded a pre-tax charge of $60 million for costs associated with the dissolution of its joint venture Wartsila NSD, announced last month.
Fourth quarter 1998 earnings were $29 million on sales of $1.61 billion.
"Our results this quarter reflect very strong demand in our power generation markets, primarily in North America, with sales up 36% from the fourth quarter of 1998," noted chairman and CEO Tim Solso.
Revenues for the engine business were $1.10 billion, up 10% from fourth quarter 1998. Worldwide sales to the heavy duty truck market were $450 million, up 15% from a year ago but down slightly from third quarter 1999. Sales in the medium duty truck market were $128 million, down 5% primarily due to lower demand in North America, the company said.
Net earnings for 1999 were $160 million on sales of $6.64 billion versus a loss of $21 million on sales of $6.27 billion in 1998.