Cummins’ first quarter financial performance suffered from further declines in most of its end markets, but the company says the worst is over.

“The first quarter is historically difficult for our industry,” noted Chairman and CEO Tim Solso. “However, we believe demand has hit a trough in most of our markets and should gradually improve going forward.”
The company reported a first quarter after-tax loss of $29 million on sales of $1.33 billion. This compares to a loss of $26 million on sales of $1.35 billion in the first quarter of 2001. Solso said the loss was disappointing but overall performance was better than earlier estimated due to cost reductions.
First quarter engine sales totaled $776 million, essentially flat compared to sales of $768 million a year ago. Revenues in automotive markets were up 3 percent year over year, due in part to increases in the light duty automotive and RV businesses. Demand in the heavy duty and medium duty truck markets was still low, however the company said it believes these markets are showing some signs of a modest improvement.
Revenues for Cummins’ Filtration and Other segment were $228 million, up 6 percent compared to the first quarter of 2001. Filtration business revenue increased in North America as some of its markets have begun a slow recovery. Revenues at the Holset Turbocharger business increased from first quarter 2001, helped in part by higher sales in China.