Responding to a sputtering global economy, Columbus-based Cummins Inc. said late Tuesday afternoon that it expects to cut 1,000 to 1,500 jobs by the end of 2012. The diesel engine manufacturer also cut its forecast for full-year revenue to about $17 billion from $18 billion.
“We continued to see weak economic data in a number of regions during the third quarter, increasing the level of uncertainty regarding the direction of the global economy,” CEO Tom Linebarger said in a statement. “As a result of the heightened uncertainty, end customers are delaying capital expenditures in a number of markets, lowering demand for our products.”
The company made the announcement after the markets closed Tuesday. In after-hours trading, Cummins shares, which had been up about 20 percent for the year, tumbled 5 percent to $86.16.
It's not clear how the cuts will affect employment in Indiana. The company has 8,000 workers in the state and about 44,000 workers overall.
Cummins shifted to cost-cutting mode this summer following a spate of torrid growth. Over two years, Cummins had quadrupled profits.
This spring, company officials outlined plans to increase annual revenue to $30 billion by 2015, a goal it now appears unlikely to achieve.
In his statement, Linebarger said: “Responding quickly and strategically during these challenging economic times will pave the way for Cummins to emerge stronger as a company when markets inevitably rebound. Taking these actions now will allow us meet customer needs, maintain strong financial performance and allow us to capitalize on future growth opportunities.”