Strong sales in all business units and across nearly every market segment pushed Cummins Inc. to record revenues and sharply higher profits in the second quarter.

Sales were $2.12 billion, while net earnings climbed to $82 million, or $1.76 a share, on a fully diluted basis - a 485% increase over the same period last year and exceeding earlier guidance of between $1.20 and $1.30 a share for the quarter.
Earnings before interest, taxes and minority interest (EBIT) were $148 million, also a single quarter record for the company. The EBIT represents 7.0% of sales, well within the company's targeted performance range.
"Our second-quarter results were outstanding and reflect our customers' very positive reactions to our product line," said Tim Solso, Cummins chairman and chief executive officer. "Sales were very good in all segments, profits were up significantly and margins strong."
Record second-quarter sales of $2.12 billion were 38% higher than the $1.54 billion reported for the same period in 2003. Cummins previous sales record was $1.84 billion in the fourth quarter of 1999.
For the first six months of the year, the company reported net earnings of $115 million -- or $2.53 a share on a fully diluted basis -- on sales of $3.9 billion.
As a result of continued performance improvement, Cummins has today increased its earnings guidance for the full year. The company now expects to earn between $5.55 and $5.75 a share in 2004, up from the previous guidance of $4.40 - $4.60 a share.
Engine business sales rose 57% from second quarter 2003 to $1.4 billion, led by higher sales in North America for heavy-duty truck engines, worldwide sales of medium-duty trucks, record sales of the Dodge Ram engine and strong worldwide construction and mining volumes. The business reported Segment EBIT of $91 million, compared to $24 million in the second quarter of 2003.
Cummins' share of the North American heavy-duty truck engine market rose more than five percentage points in first five months of the year to 26.8%, with an industry-leading 31% share for the month of May. For the second quarter, sales volumes in the North American heavy-duty market rose by 105% compared to the same period last year.