Cummins Losses Prompt Cuts, ‘Restructuring’ of Operations
The nation’s largest maker of diesel engines for heavy-duty trucks is sharply cutting back production, laying off 1,000 workers and “fundamentally restructuring” its operations in response to year-end losses and continuing industry consolidation.
Engine shipments to construction equipment makers will be down as much as 20% in the fourth quarter from the third quarter, and shipments to makers of medium-duty trucks will be down 15%, Cummins said in a statement Dec. 19.
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Cummins Inc. (CUM) said it expects operating losses of 35 cents to 45 cents a share, or $14.5 million to $18.6 million, in the fourth quarter. Analysts previously had expected Cummins to earn 66 cents a share, or about $27.4 million.
Shipments of Cummins engines for the heavy-duty truck market are down 50% from last year and 5% to 10% below third-quarter levels, company officials said.
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