Cummins Inc. today reported higher sales and improved profits in the first quarter compared to the same period in 2009.
Sales of $2.48 billion rose 2 percent from $2.44 billion in the first quarter in 2009, as growth in the company's components and distribution segments slightly more than offset declines in the engine and power generation segments.
Net income attributable to Cummins Inc. increased to $149 million, or 75 cents a share, from $7 million, or 4 cents a share, during the same period in 2009.
Compared to the fourth quarter of 2009, sales were down 27 percent due to lower demand in North America.
For the first quarter, the engine segment saw sales of $1.42 billion, down 5 percent. Industrial sales increased 24 percent; construction sales increased 62 percent; marine engine sales increased 13 percent; mining sales increased 28 percent; oil and gas sales fell 80 percent.
"Our strength in large developing markets such as China, India and Brazil has given us a significant boost as those economies have continued to recover from the recession more quickly than other regions," Cummins chairman and CEO Tim Solso said in a statement.
Based on the first quarter results and its forecast for the remainder of the year, the company today increased its sales and earning before interest and tax (EBIT) guidance for 2010. The company now expects sales to be $12 billion and to earn an EBIT margin of 10 percent of sales.