Cummins Inc. said Tuesday its third-quarter profit rose 60% from a year ago, but the engine maker trimmed its full-year revenue outlook due to “uncertainty around the macro-economic environment.”
Third-quarter net income climbed to $452 million, or $2.35 a share, from $283 million, or $1.44, a year ago. Sales for the quarter ended Sept. 25 rose 36% to $4.6 billion.
Cummins lowered its full-year sales forecast to $17.5 billion to $18 billion, down from a previously projected $18 billion.
President and Chief Operating Officer Tom Linebarger said “government actions to reduce inflation in India and China resulted in softer near-term demand than we previously expected.”
“This, along with the recent strengthening of the U.S. dollar, has caused us to slightly soften full year revenue guidance to a range of $17.5 to $18 billion, which would represent an increase of over $4 billion, or over 30%, compared to 2010,” he said in a statement.
All company segments showed double-digit year-over-year growth, Cummins said.
Engine sales jumped 43% to $2.96 billion, driven by on-highway markets in North America and Latin America and strong worldwide oil and gas, mining and construction activity. Segment earnings before interest and taxes were $349 million, or 11.8% of sales, Cummins said.
Its components segment, driven by higher demand in on-highway markets in the U.S. and Europe, grew 32% to $1.02 billion. Components segment EBIT was $113 million, or 11.1% of sales.
