Cummins Inc. said Monday it anticipates first quarter results to be a loss in the range of $.85 to $.95 per share.
These results were attributable to lower capital spending and weak consumer markets stemming from global political and economic uncertainty.
The company normally experiences seasonal weakness in the first quarter, with March being the strong month. As a result of global uncertainty, normal gains in March were not realized. However, the company expects to see increased earnings throughout the remainder of the year.
"There are more than 5,600 of our new, environmentally compliant heavy-duty engines in service," said Tim Solso, Cummins chairman and CEO. "They have accumulated more than 60 million miles of road experience, as well as endorsements from very satisfied drivers."
Cummins also announced that it will restate its 2000 and 2001 financials. The restatement relates to the previously announced need for a non-cash accounts payable adjustment primarily associated with the implementation of a new enterprise resource planning system in one of its plants. This restatement will require a re-audit of the 2000 and 2001 financials by the company's new auditors, PricewaterhouseCoopers, LLP since Arthur Andersen, LLP was Cummins auditors for those periods and is no longer providing auditing services.
The non-cash adjustment totals approximately $15.4 million after tax ($23.1 million pre-tax) and will be spread across multiple years, beginning in 1995.
Cummins has discussed the accounting adjustment with the Securities and Exchange Commission (SEC) and the company's auditors, PwC, and has concluded that a restatement is necessary. The company has found no evidence of fraud or willful misconduct on the part of any employee.
The re-audit will be completed as quickly as possible. Cummins will file its 2002 Form 10-K as soon as practicable following the finalization of the re-audit. The company also intends to release unaudited financial statements for 2002. The 2000 and 2001 financial statements, as previously reported, are subject to change as a result of the re-audit.
These results were attributable to lower capital spending and weak consumer markets stemming from global political and economic uncertainty.
The company normally experiences seasonal weakness in the first quarter, with March being the strong month. As a result of global uncertainty, normal gains in March were not realized. However, the company expects to see increased earnings throughout the remainder of the year.
"There are more than 5,600 of our new, environmentally compliant heavy-duty engines in service," said Tim Solso, Cummins chairman and CEO. "They have accumulated more than 60 million miles of road experience, as well as endorsements from very satisfied drivers."
Cummins also announced that it will restate its 2000 and 2001 financials. The restatement relates to the previously announced need for a non-cash accounts payable adjustment primarily associated with the implementation of a new enterprise resource planning system in one of its plants. This restatement will require a re-audit of the 2000 and 2001 financials by the company's new auditors, PricewaterhouseCoopers, LLP since Arthur Andersen, LLP was Cummins auditors for those periods and is no longer providing auditing services.
The non-cash adjustment totals approximately $15.4 million after tax ($23.1 million pre-tax) and will be spread across multiple years, beginning in 1995.
Cummins has discussed the accounting adjustment with the Securities and Exchange Commission (SEC) and the company's auditors, PwC, and has concluded that a restatement is necessary. The company has found no evidence of fraud or willful misconduct on the part of any employee.
The re-audit will be completed as quickly as possible. Cummins will file its 2002 Form 10-K as soon as practicable following the finalization of the re-audit. The company also intends to release unaudited financial statements for 2002. The 2000 and 2001 financial statements, as previously reported, are subject to change as a result of the re-audit.
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