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Cummins reports 3Q results

Cummins today reported that third-quarter sales and profits increased sharply from the same period a year earlier, with the company's continued strong performance in international markets a primary driver of the improved results.

Sales of $3.4 billion in the third quarter, which ended Sept. 26, rose 34 percent from $2.53 billion in the same quarter in 2009. Net income attributable to Cummins Inc. in the third quarter tripled to $283 million, or $1.44 a share, compared with $95 million, or 48 cents a share, in the same period a year earlier.

The sales gains were led by the company's engine and power generation segments, which reported 44 percent sales improvements, compared with the same period in 2009. Distribution sales increased 36 percent and components sales rose 30 percent.

"Our products continue to perform well in the market and our 2010 engine launch in North America has gone extremely well," Cummins president and COO Tom Linebarger said in a statement. "We have sold nearly 37,000 medium- and heavy-duty engines in North America this year and the customer feedback we have received indicates that the engines are delivering on our promise of reliability and improved fuel economy."

Sales in the company's non-U.S. markets increased 56 percent from the third quarter of 2009 and accounted for 63 percent of Cummins' consolidated revenues, consistent with the first two quarters of the year.

In other highlights from the quarter:

  • Cummins increased the quarterly cash dividend on its common stock by 50 percent, to 26.25 cents a share, from 17.5 cents a share.
  • Standard & Poor's increased its long-term credit rating on Cummins to BBB+ from BBB. In increasing the investment-grade rating, S&P cited the company's "improved performance" and "conservative financial policy."
  • Cummins was named to the Dow Jones World Sustainability Index for the sixth consecutive year. The index recognizes the top 10 percent of the world's largest public companies for their economic, environmental and corporate responsibility leadership.

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