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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowColumbus-based engine maker Cummins Inc. saw revenue and income rebound in the third quarter, exceeding analysts’ expectations and sending the company’s stock price to a record high on Tuesday.
Shares of Cummins started the day at an all-time high of $230.92, up from Monday’s closing price of $220.68. At 10:30 a.m., shares were trading at $222.80.
On Tuesday morning, Cummins reported third-quarter revenue of $5.1 billion. That was lower than the $5.8 billion it posted in the same period last year but up sharply from the $3.9 billion the company reported during the second quarter of 2020.
Likewise, the company reported third-quarter net income of $501 million, or $3.36 per diluted share, as compared with $622 million, or $3.97 per diluted share, during the same period a year ago. Net income during the second quarter of this year plunged to $276 million, or $1.86 per diluted share, because of pandemic-related business impacts.
“Cummins successfully translated increased sales into strong profits and produced record operating cash flow during the third quarter,” Cummins Chairman and CEO Tom Linebarger said in a prepared statement. “I want to thank our employees all over the globe once again for their dedication to our company and to our customers. Over the last six months we have faced both the most severe decline in quarterly sales in our history as well as the largest sequential increase.”
Analysts had expected Cummins to report third-quarter revenue of $4.5 billion and earnings of $2.35 per share.
Cummins said it expected its fourth-quarter revenue to be similar to third-quarter levels.
“We are encouraged by the recovery in demand across our markets in the third quarter,” Linebarger said. “We will continue to manage cautiously through the remainder of the year as visibility on future orders remains low and the impact of the virus on economies around the world remains difficult to predict.”
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“I want to thank our employees all over the globe once again for their dedication to our company and to our customers. Over the last six months we have faced both the most severe decline in quarterly sales in our history as well as the largest sequential increase.”
So, does this surging to a record stock price mean that they will now pay the employees back for the mandatory 20% salary cuts in the second and third quarters, asking for a friend?