Cummins Lowers Earnings Forecast

Diesel engine maker Cummins Inc. lowered its 2008 sales and profit forecast, due to “significant declines” in demand.

Sales for the year will rise 9% from last year, compared with a previous 12% forecast, while earnings before interest and taxes will grow 9%, down from its prior forecast of 10%, Cummins said Thursday.

“Our engine and components segments are seeing the most significant declines with revenues for the fourth quarter down 15% compared to what we anticipated in our previous guidance at the end of October,” Chairman and Chief Executive Officer Tim Solso said.

“We do not expect market conditions to improve significantly in the immediate future,” he said in a statement.

Cummins said last week it would cut 500 jobs because of lower demand due to sluggish economies worldwide.