Skip to main content

Cummins reports 3Q results

Cummins lowered its outlook for the year after reporting lower-than-expected third-quarter revenue, citing weakness in the mining industry.

Sales in the power generation segment were down 13 percent, to $712 million, for the quarter that ended Sept. 29. Earnings before interest and taxes were $45 million — or 6.3 percent of sales — down from $73 million, or 9 percent of sales, in 2012. The company said weak demand in most international markets, particularly Europe and India, offset stronger revenue in North America.

Engine sales were down 1 percent, at $2.5 billion, because of lower demand in global mining, stationary power and the light-duty on-highway market in the United States.

The company posted net income of $355 million, or $1.90 a share, up from $352 million, or $1.86 a share, last year.

Based on the current forecast, the company expects full-year revenue to be down 3 percent from 2012, compared with its previous expectation that revenue would be flat in comparison to last year.

“The company increased gross margins in the third quarter, primarily due to the benefits of our cost-reduction initiatives,” Cummins chairman and CEO Tom Linebarger said in a statement.

“Material cost savings, productivity gains and lower warranty expenses all contributed to the improvement. Revenues were below our expectations as we continue to face an environment of weak demand for capital goods in most of our major markets. Our focus on lowering costs in all parts of our business positions us well to deliver strong earnings growth as market conditions improve."

Related

1_CHAPARRAL.FAFARD

Chaparral VP Takes Expanded Role

Senior vice president Mike Fafard will now be in charge of manufacturing, in addition to engineering and design

1_ABYC.ELECTRICAL

ABYC Offers New Electrical Course

Advanced Marine Electrical, the group’s newest certification, is an on-demand, online course outside of scheduled classes

1_SILENTYACHTS

Silent-Yachts Acquires Italian Yard

The facility in Fano, on the Adriatic Sea, has 236,806 square feet of production space and will employ about 250 people

1_GETTINGTECHNICAL

Increasingly Infinite Options

Additive manufacturing is rapidly becoming a go-to technology for companies in the marine industry, and while some choose to outsource, others are taking advantage of the rapidly dropping price of 3D printers.

DealerOutlook

Celebrating 50 Years of the Clean Water Act

The great strides in water quality that the CWA has created have been a huge benefit to boating, but there’s a lot more that remains to be done.

1_IRISINNOVATIONS

Iris Innovations Opens U.S. Office

The U.K.- based on-board camera manufacturer aims to leverage its new location in Fort Lauderdale, Fla., to strengthen its position in the U.S. market.

1_KVHCEO

KVH Industries Appoints CEO, Directors

Brent C. Bruun takes over as president and CEO, and David Kagan and David Tolley were appointed to the board.

1_WINNEBAGO.EARNS

Winnebago Reports 3Q Results

The parent of Chris-Craft and Barletta said profit margins widened after its acquisition of the pontoon builder.