Cummins Issues Low 3Q Estimate
September 26, 2000
Company officials say Cummins Engine’s third-quarter earnings will fall short of expectations because of a sluggish heavy-duty truck market and reduced demand for truck parts.
According to Associated Press reports, the news sent the diesel engine manufacturer's shares down 12.5 cents per share to $31.25 in midday trading yesterday on the New York Stock Exchange.
The Columbus, Ind.-based diesel engine manufacturer said it expects to report earnings of about 65 cents per share in mid-October. Industry analysts who follow the company have issued a consensus estimate of 85 cents, Thomson Financial/First Call reported.
Cummins, which had sales of $6.6 billion in 1999, also said the weakness of the euro and British pound affected the lower earnings projection.