Cummins Reports 75% Increase in First Quarter Profit
April 13, 2000
Despite slowing North American demand for medium and heavy duty trucks, Cummins Engine Co. posted a 75% increase in first quarter profits compared to the same period last year.
The company's first quarter 2000 after-tax profit was $42 million on sales of $1.65 billion. First quarter 1999 after-tax profit was $24 million on sales of $1.5 billion.
Chairman and CEO Tim Solso said the earnings increase reflected strength across most of Cummins' markets, except the North American heavy truck market where they've seen a decrease in demand.
"Our power generation, filtration, construction, marine, bus, pickup truck, and international heavy duty truck markets were all up," he said. "Delivering these earnings in the face of the decrease in North American heavy duty truck market reflects our continuing diversification."
Revenues for the engine business were $1.05 billion, up 5% from first quarter 1999. Sales of heavy duty truck engines were $415 million, up slightly from 1999, but unit shipments were down 9%. Sales to the medium duty truck market were $112 million, down 13% from a year ago, dut to lower sales in the U.S. and Latin America.