Cummins Inc., Columbus, Ind., reported third quarter earnings of $1 per fully diluted share or $39 million profit after taxes, on sales of $1.65 billion.
This compares to earnings of 8 cents per share for the third quarter of 2001, or $3 million profit after taxes on sales of $1.41 billion.
"Results from our Engine Business reflected increased demand for heavy-duty engines in advance of the Oct. 1 deadline for new diesel emission standards, as well as the significant progress that we have made with our ongoing cost reduction efforts," said Tim Solso, chairman and CEO. "Even though the majority of our end markets continue to be at very weak levels, we delivered a dollar a share," Solso added. "This demonstrates the earnings potential we have as our markets improve."
Total third-quarter sales for the Engine Business were $1.03 billion, a 35% increase over the same period last year. Revenues for the heavy-duty truck segment were up 70%. Medium-duty truck and bus revenues increased 41%, compared to the third quarter of 2001. Dodge Ram sales and a significant increase in engines for recreational vehicles boosted revenues in the light-duty automotive and RV business by 43% this quarter compared to a year ago. Engine sales to industrial markets in total were down 7% from the previous year.
Sales in the Power Generation Business for the third quarter were $315 million, down 15% from the third quarter of 2001.
Revenues for the Filtration and Other segment were $236 million for the quarter, a 12% increase over the third quarter of 2001. Filtration business revenue was up in North America, with improvement in both demand and market penetration. Third-quarter sales for the International Distributor Business were $152 million, an increase of 12%, compared to sales of $136 million for the same period last year. The increase reflects improvement across most regions and significant increases in Australia.
The company forecasts lower sales in the fourth quarter based on the projected fall-off of the North American heavy-duty truck market and a continuation of the depressed demand in the Power Generation Business. However, continued improvement is expected in the Filtration and International Distributor Businesses.
"The fourth quarter will be challenging, but we're taking specific actions to address it. We are focused on cost reduction and tightly managing all expenses to drive earnings to the bottom line," Solso said. "As a result, we expect to have full year profits for 2002 of $0.40 to $0.50 per share."