Cummins Inc., the Columbus, Ind.-based diesel engine maker, told the Associated Press this week that it is cutting back on overtime, trimming its temporary work force and planning for plant "shutdown days" in order to avoid layoffs.
The company said the cost-trimming measures are the result of a tough market and federal emissions standards that took effect this week.
On Tuesday, Moody's Investors Service downgraded Cummins' debt outlook from "stable" to "negative," citing market uncertainties caused by the more stringent emissions standards that apply to the nation's truck engine makers.
However, Moody's said recent restructuring by Cummins "should help it to maintain a competitive position in truck engines, and improve longer-term returns."
On Monday, the heavy duty truck engine manufacturer said it planned to eliminate overtime pay and put some workers on unpaid leave during planned plant shutdown days. Cummins also said it no longer needs about 200 temporary workers from Manpower Inc.
Cummins traditionally has had plant shutdown days in the summer. But no such days were ordered this past summer because of heavy demand for engines that did not have to comply with the new federal standards that took effect Tuesday. Those days will return this fall. Details on the dates or number of shutdown days at heavy-duty engine plants in Columbus and Jamestown, N.Y. are pending.
The company said the cost-trimming measures are the result of a tough market and federal emissions standards that took effect this week.
On Tuesday, Moody's Investors Service downgraded Cummins' debt outlook from "stable" to "negative," citing market uncertainties caused by the more stringent emissions standards that apply to the nation's truck engine makers.
However, Moody's said recent restructuring by Cummins "should help it to maintain a competitive position in truck engines, and improve longer-term returns."
On Monday, the heavy duty truck engine manufacturer said it planned to eliminate overtime pay and put some workers on unpaid leave during planned plant shutdown days. Cummins also said it no longer needs about 200 temporary workers from Manpower Inc.
Cummins traditionally has had plant shutdown days in the summer. But no such days were ordered this past summer because of heavy demand for engines that did not have to comply with the new federal standards that took effect Tuesday. Those days will return this fall. Details on the dates or number of shutdown days at heavy-duty engine plants in Columbus and Jamestown, N.Y. are pending.
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