Cummins Reports 1Q Results

Cummins Inc. reported a first quarter loss of $.75 per share, or $29 million loss after taxes, on sales of $1.33 billion. This compares to a loss of $.68 per share or $26 million in the first quarter of 2001 on sales of $1.35 billion. "As we forecasted in January, the majority of our end markets declined further from what were already extremely low levels, leading to a significant impact on our earnings," said Chairman and Chief Executive Officer Tim Solso. "While I am disappointed in the loss, earnings did beat our estimates and we made strides in several areas as a result of our continuous focus on cost reduction and quality improvements." One of the areas of promise was the marine engine business. Total sales in the Engine Business in the first quarter were $776 million, essentially flat with sales of $768 million a year ago. Revenues in automotive markets were up 3 percent year over year, due in part by increases in the light duty automotive and RV businesses. Demand in the heavy duty and medium duty truck markets was still low, however the company believes these markets have finally bottomed, and are showing some signs of a modest improvement. Overall revenue from Industrial markets was down slightly year-over-year, with decreases in construction and mining sales, partially compensated by improved sales in agricultural and marine markets.