Cummins Inc., Columbus, Ind., has reported second quarter earnings of $.34 per share, or $14 million profit after taxes, on sales of $1.54 billion.
The quarter represents significant improvement in the engine business, particularly due to increased sales in the Dodge Ram truck and a rebound in sales in the North American heavy-duty truck market. The performance in these businesses bolstered profits.
"We believe this quarter's results demonstrate that we are well positioned for the market upturn. Three of our four businesses are performing well, and the fourth business has taken necessary actions to return to profitability," said Tim Solso, chairman and Chief Executive Officer. "We are delivering the right products to the market for our customers. We are generating positive cash flow, while funding important product development programs. We remain committed to paying an attractive dividend to our shareholders and providing a good return to all our stakeholders. We will continue to tightly manage spending and believe we will benefit strongly as our markets continue to recover."
Total sales for the engine business in the second quarter were $889 million, a 5% increase from sales of $850 million a year ago. Revenues in automotive markets were 6% higher than the second quarter of 2002, with increases in its light-duty automotive business more than offsetting sales declines in medium-duty truck and bus engines.
The company says the engine business continues to benefit from the successful launch of their complete line of emission-compliant engines. There are now more than 16,000 of the new ISX and ISM heavy-duty engines in the field, with almost 450 million miles of service accumulated. By October, the company expects to have more than 25,000 engines in service, with close to one billion miles of reliable performance.
The quarter represents significant improvement in the engine business, particularly due to increased sales in the Dodge Ram truck and a rebound in sales in the North American heavy-duty truck market. The performance in these businesses bolstered profits.
"We believe this quarter's results demonstrate that we are well positioned for the market upturn. Three of our four businesses are performing well, and the fourth business has taken necessary actions to return to profitability," said Tim Solso, chairman and Chief Executive Officer. "We are delivering the right products to the market for our customers. We are generating positive cash flow, while funding important product development programs. We remain committed to paying an attractive dividend to our shareholders and providing a good return to all our stakeholders. We will continue to tightly manage spending and believe we will benefit strongly as our markets continue to recover."
Total sales for the engine business in the second quarter were $889 million, a 5% increase from sales of $850 million a year ago. Revenues in automotive markets were 6% higher than the second quarter of 2002, with increases in its light-duty automotive business more than offsetting sales declines in medium-duty truck and bus engines.
The company says the engine business continues to benefit from the successful launch of their complete line of emission-compliant engines. There are now more than 16,000 of the new ISX and ISM heavy-duty engines in the field, with almost 450 million miles of service accumulated. By October, the company expects to have more than 25,000 engines in service, with close to one billion miles of reliable performance.
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