Cummins’ Second-Quarter Profit Doubles

Engine maker Cummins Inc. said Tuesday its second-quarter profit doubled to a record on higher sales, and it boosted its earnings outlook for the full year.

Net income jumped to $505 million, or $2.60 a share, from $246 million, or $1.25, a year ago. Sales for the quarter ended June 26 rose 45% to $4.6 billion.

Excluding a $68 million gain on the sale of its exhaust business — $37 million after tax, or 19 cents per share — Cummins said it earned $2.41 per share for the quarter.

Its engine, components and distribution segments each delivered record sales and earnings, and Cummins said it expects to earn 14.5% earnings before interest and taxes on $18 billion in sales this year, up from an earlier forecast of 14% EBIT on $17 billion in sales.

Engine sales jumped 53% to $2.9 billion, driven by strong growth in global truck markets and off-highway markets, including mining and oil and gas. Engine EBIT was $377 million, or 13% of sales, Cummins said.

Within the engine segment, Cummins’ said its Environmental Protection Agency 2010 engines “continue to perform well in terms of reliability and fuel economy.”

It has shipped 126,000 medium- and heavy-duty engines equipped with selective catalytic reduction aftertreatment technology devices to North American truck and bus customers.

Its components segment, driven by recovery in North American on-highway markets, had its first $1 billion sales quarter, with sales up 42%. The gain on the sale of its exhaust business was not included in the segment results.