Cummins Inc. posted a loss for 2001, despite profits in the last three quarters.

For 2001, Cummins reported a loss of $18 million, excluding a pre-tax charge of $125 million for costs associated with restructuring in the second quarter. Including the charge, Cummins lost $102 million.
However, the company noted that it was profitable in each of the last three quarters of the year, despite substantially lower sales. Cummins reported after-tax profits of $3 million on revenues of $1.46 billion for the fourth quarter of 2001, compared to a $17 million loss, before $160 million in restructuring charges, on sales of $1.61 billion for fourth quarter 2000.
Cummins’ 2001 sales were $5.7 billion compared to $6.6 billion in 2000. Net earnings in 2000 were $111 million.
"2001 was a challenging year for us, yet we were able to make significant progress in improving our operations and meeting our financial commitments in the face of the most severe market conditions that I can remember," said Chairman and CEO Tim Solso.
Fourth quarter revenues for the company’s Engine Business were $800 million, down 15% from the fourth quarter 2000. Worldwide sales to the heavy duty truck market were $247 million, down 23% from fourth quarter 2000, reflecting a continuing softness in the market and plant shutdowns at several OEMs.
In the medium-duty truck and bus segment, sales were $151 million, up 2% from last year. Sales to the light-duty automotive and recreational vehicle segment were down 26%, to $139 million, primarily due to the model changeover in the Dodge Ram pickup. Sales of $263 million to agriculture, construction, mining, marine, and other industrial markets were down 6% compared to fourth quarter 2000.
Power Generation revenues were $358 million for the quarter, down 2% from the same period a year ago. Sales of filtration and other products of $305 million were essentially flat from the fourth quarter 2000, while earnings before interest and taxes improved by $4 million. The exhaust business saw its first quarter-on-quarter increase in the sales and profits since the downturn began.
The company said it does not expect a significant improvement in revenue in 2002, but does expect profitability improvement through continuing cost reduction efforts. Citing further deterioration in its Power Generation and Engine Business markets, Cummins said it expects a $31 million loss in first quarter 2002.