Cummins Announces 2002 Outlook
Cummins Inc. today released its expectation for improved profitability despite essentially flat revenues for 2002. During the October 11th teleconference on third quarter earnings Solso noted that rapid market changes in the U.S. and around the world following the September 11th terrorist attacks caused Cummins to revisit its 2002 planning process. Based on recently completed plans, the company is forecasting a 2002 PBIT in the range of $155 to $165 million, with net earnings of $35 to $45 million, resulting in diluted earnings per share of approximately $1 per share. Solso stated, "The completion of our restructuring actions combined with indirect and direct material cost initiatives and Six Sigma improvement projects will result in a net savings of $75 million.
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. 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.
