Cummins Inc. saw a significant increase in its heavy duty engine sales for the second quarter, but higher sales for all automotive engines indicates that recovery is under way.

“The majority of our end markets remain at very low levels,” said Chairman and CEO Tim Solso. “However, we believe we reached the bottom in most of these markets in the first quarter of this year and are now seeing moderate improvement. We expect this trend to continue.”
Total sales for Cummins’ Engine Business were $850 million, an 8% increase over second quarter 2001. Sales of heavy duty truck engines were $265 million compared to $235 million a year ago and $219 million in first quarter of this year. The company shipped 14,700 heavy duty engines in second quarter compared to 14,400 units a year ago and 11,200 in first quarter.
Sales of medium duty truck and bus engines were $157 million, up from $147 million a year ago and $138 million in first quarter. Shipments of midrange engines totaled 67,000 units for the quarter versus 66,500 a year ago and 60,500 in first quarter.
Sales of light duty auto and RV engines were $179 million, compared to $151 million a year ago and $157 million in first quarter. Overall revenue in industrial engine markets was $249 million, down slightly from a year ago. The company said decreases in mining and construction sales were partially offset by increased sales in agricultural and rail markets.
Total sales for all Cummins divisions was $1.46 billion, about the same as second quarter 2001. Profit was $13 million compared to an $82 million loss, including $125 million in restructuring charges, a year ago. Revenues for its Power Generation business were $304 million, down 21% from the same period last year. Revenues for the Filtration and Other segment were $243 million, up 8% from a year ago.
The company said it expects some improvement in the majority of its markets through the rest of the year. The one exception is heavy duty truck engines, where Cummins expects stronger third quarter earnings than previously forecast, with a decrease in the fourth quarter. While Cummins made no mention of pre-buying in its earnings release, stronger second and third quarter heavy duty engine sales, followed by the fourth quarter dip, are generally attributed to stepped-up purchasing by truckers who are wary of new emissions standards effective October 1.