Cummins Engine Co. reported profits of $61 million for second quarter 2000, a 5% increase over the same period a year ago.
Sales were $1.77 billion versus $1.67 billion second quarter 1999.
“Our earnings this quarter demonstrate that we have successfully diversified our business,” said Chairman and CEO Tim Solso. “Earnings per share were up 8% from the year ago quarter despite a 28% decline in shipments to the North American heavy duty truck market, as well as a weaker North American construction market.”
Solso said they still expect a 30% decline in the North American heavy truck market this year with the biggest jolt coming in the second half as truck manufacturers make major adjustments in their build rates. Other Cummins markets are expected to remain strong.
Second quarter revenues for Cummins’ engine business were $1.11 billion, up slightly from second quarter 1999. Earnings before interest and taxes were $43 million or 3.8% of sales, compared to $59 million or 5.4% of sales a year ago.
Worldwide sales to the heavy duty truck market were $400 million, down 14% from a year ago. Unit shipments to the North American heavy truck market were down 28%. In the medium duty truck market, sales of $133 million were about the same as last year.
Sales to the bus and light commercial vehicle markets were $277, up 26% from last year. That included record shipments of 32,100 engines to DaimlerChrysler for its Dodge Ram pickup trucks. Sales to agriculture, construction, mining, marine and other industrial markets were up 8%.
For the first six months of 2000, Cummins reported net earnings of $103 million on revenues of $3.4 billion versus net earnings of $82 million on revenues of $3.2 billion for the first six months of 1999.