Cummins’ 4Q Income Declines
Cummins Inc.’s fourth-quarter operating profit and sales fell on weaker North American trucking and construction markets, the engine maker said Wednesday.
Net income fell to $381 million, or $2.02 per share, from $548 million, or $2.86 per share, a year earlier. Sales fell 13% to $4.3 billion.
For the full year, Cummins earned $1.66 billion, or $8.74 per share, down from $1.85 billion, or $9.55, in 2011. Net sales fell to $17.3 billion, from $18 billion a year ago.
Its engine unit’s fourth-quarter earnings before interest and taxes fell to $272 million from $368 million a year earlier, as engine sales dropped 18%.
Heavy-duty truck engine sales for the quarter fell to $609 million from $$865 million a year earlier, but rose for the year to $2.96 billion, from $2.79 billion in 2011.
Strong demand for bus and light-duty engines in North America in the quarter was more than offset by reduced demand in the North American heavy-duty truck market, Brazil’s truck market, global construction and the North American oil and gas and international mining markets, Cummins said.
“After a strong start to the year, demand declined across most geographies and end markets in the second half of 2012 as the global economy slowed,” Chairman and CEO Tom Linebarger said in a statement.
Citing economic “uncertainty,” Cummins said its full-year 2013 revenue will be flat to down 5%, with earning before interest and taxes in the range of 13% to 14% of sales.
