Cummins reported strong third quarter sales growth and earnings, and is headed for "its best year ever," said Tim Solso, chairman and CEO. Sales were $4.6 billion, up 36% from the same period last year.


All segments delivered double-digit growth over the prior year. Year-over-year growth was driven by global mining and oil & gas markets, on-highway markets in North America and Brazil, and construction demand in Asia.

Earnings before interest and taxes (EBIT) were $640 million, or 13.8% of sales, compared to $449 million, or 13.2% of sales, in the same period in 2010.

Net income in the third quarter was $452 million or $2.35 per diluted share, an increase of 60% from a year ago. This compares to $283 million or $1.44 per diluted share a year ago.

"We delivered strong performance in the third quarter and 2011 will be a record year for the company," said Tom Linebarger, president and COO. "Many of our key markets continue to show strong growth, for example, mining, oil and gas, and North American on-highway markets.

"However, as discussed at our recent investor conference, there is some uncertainty around the macro-economic environment. Government actions to reduce inflation in India and China have resulted in softer near-term demand than we previously expected.

"This, along with the recent strengthening of the U.S. dollar, has caused us to slightly soften full year revenue guidance to a range of $17.5 to $18 billion, which would represent an increase of over $4 billion or over 30% compared to 2010," Linebarger said.

The company now expects to deliver record profits of 14-14.5% EBIT, compared to 12.5% in 2010. This guidance excludes gains from the sale of the exhaust and light-duty filtration businesses.

Engine segment sales of $2.96 billion were up 43% compared to the same quarter a year ago. This increase was driven by on-highway markets in North America and Latin America, strong worldwide oil & gas, mining and construction activity. Engine segment EBIT was $349 million, or 11.8% of sales.

Other third quarter highlights: Cummins repurchased 1.9 million shares for $173 million, and increased its dividend 52% effective in July. Meanwhile, S&P increased Cummins' credit rating to 'A,' which follows an upgrade by Fitch Ratings in June.