Cummins’ Profits Rise as Engine Demand Recovers
Engine manufacturer Cummins Inc., said that its second-quarter profits rose to a record as overseas demand bolstered a recovering North American truck-engine market.
Cummins said it earned $293 million, or $1.49 a share, in the quarter ended June 29, on sales of $3.89 billion, a 16% gain compared with the 2007 quarter.
Total sales of heavy-duty truck engines in the second quarter rose to $672 million from $473 million a year ago, Cummins said in its latest earnings report. The company shipped 31,700 heavy-duty engines in the second quarter, up from 23,800 a year ago.
Notwithstanding soaring fuel prices and a weak U.S. economy, Cummins said that demand for heavy-duty truck engines in North America improved from year-ago levels, when the 2007 federal emission regulations “led to sharply lower demand.”
Cummins also noted that a joint venture with China’s Dongfeng Motor Co., a collaboration focused on building engines for Chinese trucks, had “significantly higher income . . . as result of a pre-buy in the on-highway truck market in advance of new emissions standards.”
Cummins also said that tighter emission regulations in Europe and North America contributed to “significant sales gains” for its Emission Solutions unit in both markets.
Cummins said it earned $293 million, or $1.49 a share, in the quarter ended June 29, on sales of $3.89 billion, a 16% gain compared with the 2007 quarter.Total sales of heavy-duty truck engines in the second quarter rose to $672 million from $473 million a year ago, Cummins said in its latest earnings report. The company shipped 31,700 heavy-duty engines in the second quarter, up from 23,800 a year ago.
Notwithstanding soaring fuel prices and a weak U.S. economy, Cummins said that demand for heavy-duty truck engines in North America improved from year-ago levels, when the 2007 federal emission regulations “led to sharply lower demand.”
Cummins also noted that a joint venture with China’s Dongfeng Motor Co., a collaboration focused on building engines for Chinese trucks, had “significantly higher income . . . as result of a pre-buy in the on-highway truck market in advance of new emissions standards.”
Cummins also said that tighter emission regulations in Europe and North America contributed to “significant sales gains” for its Emission Solutions unit in both markets.
