Cummins lowers previously reported earnings

February 20, 2013

Columbus-based diesel engine manufacturer Cummins Inc. lowered its previously reported quarterly profit by $12 million, or 3.1 percent, after discovering legal fees that the company initially missed.

Cummins announced Wednesday that it actually finished its fourth quarter with a $369 million profit, or $1.95 per diluted share. The company reported Feb. 6 that it earned $381 million in the period ended Dec. 31.

Earnings before interest and taxes dropped by $20 million, to $532 million.

Earnings for all of 2012 fell to $1.65 billion, or $8.67 per share, from $1.85 billion, or $9.55 per share, in 2011.

The company adjusted its earnings to reflect an increase to its legal reserves after a “recent adverse court ruling” for a contract dispute.

Cummins did not specify which court case it was referring to.

A company spokeswoman did not immediately respond Wednesday morning to a voicemail seeking comment.

Cummins shares fell 59 cents, or 0.5 percent, to $117.78 each in morning trading.


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