Shares in Cummins Inc. slid more than 9 percent Tuesday morning after the Columbus-based engine manufacturer reported weaker-than-expected sales and profit in the third quarter, and lowered its outlook for the rest of the year.
Cummins' profit rose less than 1 percent, to $355 million, or $1.90 a share, compared with $352 million, or $1.86 a share, a year ago.
Excluding one-time items such as tax adjustments, profit rose to $1.94 per share, up from $1.78 a share last year. On that basis, analysts had been expecting earnings of $2.11 a share.
Revenue rose 3.6 percent, to $4.27 billion, missing analyst expections of $4.38 billion.
Cummins said it now expects 2013 revenue to decline 3 percent from 2012 after it previously predicted 2013 revenue would be flat. That implies sales of $16.81 billion this year, below Wall Street's forecast of $17.37 billion.
The mining industry — a key market for Cummins — has been slowing. Revenue from engines fell 1 percent, to $2.5 billion, because of lower demand for mining and light-duty highway engines, the company said.
Sales of power generators dropped 13 percent, to $712 million, while parts sales rose 14 percent, to $1.1 billion.
North American revenue rose 11 percent, but international revenue fell 4 percent because growth in China and Brazil was offset by weak demand in India, Australia, and Europe.
Cummins' stock was down $10.80, or 8 percent, about an hour after the market opened, to $124.11 per share. The stock was up 25 percent this year through Monday's close.