Cummins’ First-Quarter Profit Plunges
Diesel engine maker Cummins Inc. said Thursday its first-quarter profit plunged and that its engine sales would decline by more than 30% this year.
The company’s net income fell to $7 million, or 4 cents a share, from $190 million, or 97 cents, a year ago, while sales fell 30% to $2.44 billion.
Engine segment sales fell 32% to $1.49 billion, while the unit lost $16 million before interest and taxes, compared with a profit of $194 million a year ago.
The engine segment’s joint ventures reported a $3 million loss in the quarter, compared to a $33 million profit last year, Cummins said.
“The first quarter was . . . extremely challenging and we do not see the economy or our markets improving for the remainder of 2009,” Chairman and Chief Executive Officer Tim Solso said.
“We have taken significant actions to lower our costs and improve our productivity in response to the global recession, which has affected virtually every market in which we operate around the world,” he said in a statement.
