Cummins’ Second-Quarter Profit Plunges
Diesel engine maker Cummins Inc. said Thursday its second-quarter profit plunged 81% due to sharply lower sales volumes.
The company’s net income fell to $56 million, or 28 cents a share, from $293 million, or $1.49, a year ago, while sales fell 37% to $2.43 billion.
Engine segment sales fell 45% to $1.31 billion, while the unit lost $4 million before interest and taxes, compared with a profit of $221 million a year ago.
The engine segment’s joint ventures earned $15 million, or 47%, less in the quarter compared to last year, Cummins said.
“The economic climate continues to be extremely challenging, and we are managing our business under the assumption that we won’t see any recovery in our markets in 2009,” Chairman and Chief Executive Officer Tim Solso said.
“Still, our aggressive efforts to reduce costs and align manufacturing capacity with demand have allowed us to perform well under the circumstances and to position ourselves to emerge from the downturn an even stronger company,” he said in a statement.
