Cummins to Cut Workforce as it Reports 3Q Revenue, Income Down
November 1, 2012
Cummins' third-quarter revenue fell 11% from last year, as revenues from international markets dropped 21%, and net income dropped from $352 billion from last year's $452 million.
Third-quarter revenue was $4.1 billion. Revenues in North America grew 2%. Based on the current forecast, Cummins expects full year revenues to be $17 billion.
"Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets," said Tom Linebarger, chairman and CEO.
"We have been responding to the conditions by delaying or cancelling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses, and reducing our workforce by 1,000 to 1,500 people by the end of this year."
In the Engine Segment, sales were $2.5 billion, down 14% from last year, with lower demand in North American heavy-duty truck, medium-duty truck, oil and gas and mining markets. Lower demand for trucks in Brazil and in the construction market in China offset stronger demand for light-duty truck and construction engines in North America.