Financial Results and Factories and Cummins Inc. and Manufacturers and Manufacturing & Technology

Cummins' profit more than doubles in first quarter

April 26, 2011

Cummins Inc. saw profit more than double in the first quarter amid continued strength in key international markets and a recovery in the North American truck market.

The Columbus, Ind.-based engine maker on Tuesday reported profit of $343 million, or $1.75 per share, compared with $149 million, or 75 cents per share, in the first quarter of 2010.

Revenue soared 56 percent, to $3.9 billion.

Analysts polled by Thomson Reuters had expected profit of $1.44 per share on $3.6 billion in revenue.

The strong performance prompted the company to raise its sales forecast this year by $1 billion, to $17 billion.

“Our outstanding first-quarter results demonstrate that we are well-positioned to take advantage of our significant growth opportunities as markets around the world continue to recover,” Cummins CEO Tim Solso said in a prepared statement.

Sales in the engine segment climbed 68 percent, to $2.4 billion, compared with the first quarter last year, when sales suffered from a change in emission standards and the economic downturn, the company said.

Engine shipments in the global heavy-duty truck market more than tripled year over year, while medium-duty truck engine sales more than doubled.

Shares of Cummins were up nearly 7 percent, to $115.30 each, in mid-morning trading.
 
 

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