Cummins Inc. continued its strong performance in the third quarter, reporting an 18 percent increase in net earnings on a 14 percent increase in sales, compared to the same period in 2005.
Sales for the quarter were $2.81 billion, compared to $2.47 billion for the third quarter of 2005. Net income of $171 million, or $3.37 a share, was up from $145 million, or $2.90 a share, in the same period last year.
Each of the company’s business segments enjoyed double-digit percentage sales growth in the third quarter. Sales in the Engine Business, the company’s largest segment, rose 10 percent despite a decline in light-duty automotive volumes late in the quarter as a result of plant shutdowns at automotive facilities related to inventory rebalancing.
“We performed well in the third quarter and see great opportunities for the future,” said Cummins Chairman and Chief Executive Officer Tim Solso. “We also continue to produce returns above 10 percent, even as we are investing in new products, new markets and additional capacity for 2007 and beyond.”
Higher heavy-duty, medium-duty and high horsepower shipments more than offset a drop in light-duty shipments due to softness in the U.S. auto industry. Heavy-duty engine shipments in North America were strong as OEMs worked to meet increased demand from truck fleets, in part due to fleets replacing trucks ahead of the 2007 emissions changes. The company also grew its sales in the North American medium-duty truck and bus engine market by 48 percent from the same quarter in 2005.
Sales for the quarter were $2.81 billion, compared to $2.47 billion for the third quarter of 2005. Net income of $171 million, or $3.37 a share, was up from $145 million, or $2.90 a share, in the same period last year.
Each of the company’s business segments enjoyed double-digit percentage sales growth in the third quarter. Sales in the Engine Business, the company’s largest segment, rose 10 percent despite a decline in light-duty automotive volumes late in the quarter as a result of plant shutdowns at automotive facilities related to inventory rebalancing.
“We performed well in the third quarter and see great opportunities for the future,” said Cummins Chairman and Chief Executive Officer Tim Solso. “We also continue to produce returns above 10 percent, even as we are investing in new products, new markets and additional capacity for 2007 and beyond.”
Higher heavy-duty, medium-duty and high horsepower shipments more than offset a drop in light-duty shipments due to softness in the U.S. auto industry. Heavy-duty engine shipments in North America were strong as OEMs worked to meet increased demand from truck fleets, in part due to fleets replacing trucks ahead of the 2007 emissions changes. The company also grew its sales in the North American medium-duty truck and bus engine market by 48 percent from the same quarter in 2005.
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