Broad gains across most of the company’s product and geographical markets led Columbus, Ind.-based Cummins Inc. to record revenues and strong earnings in the second quarter.

The company last week reported second-quarter revenues of $3.34 billion, up 18 percent from $2.84 billion in the second quarter of 2006 and 10 percent higher than the previous quarterly record set in the fourth quarter of last year.

Net income of $214 million, or $2.13 per diluted share, was down 3 percent from $220 million ($2.19 per diluted share) in the second quarter of 2006, which included a $28 million ($0.28 per share) one-time tax benefit. Absent the tax benefit a year ago, net income increased 11 percent over the same period in 2006.

Earnings Before Interest and Taxes (EBIT) increased 9 percent to $354 million, from $325 million during the same period in 2006, and also was a quarterly record.

The company’s strong performance comes in the face of the emissions-related slowdown in the North American heavy-duty truck market, which is expected to be down 45 percent this year. Cummins’ North American heavy-duty engine shipments fell 42 percent from a year ago, but significant growth in the Company’s non-heavy duty truck engine markets and other product lines more than offset that decrease.

“This was a tremendous quarter for Cummins and is further proof that the work we have done to diversify our business is paying off,” said Cummins chairman and CEO Tim Solso. “Our strong performance in the first half of the year has put us in a position to make 2007 Cummins’ most profitable year ever — which would be a significant feat given the challenges we have faced in the heavy-duty truck engine market.”

Based on its first-half performance and its outlook for the remainder of the year, Cummins also raised its 2007 earnings guidance today to $7.15 to $7.65 from $6.00 to $6.50 a share.

In the Engine business, sales to light-duty automotive and recreational vehicle markets, as well as the global medium-duty truck, bus and construction markets, were the key drivers of broad gains — lessening the impact of lower heavy-duty truck engine sales. Segment EBIT fell 2 percent from 2006.

The company’s Power Generation business continues to produce record sales and earnings, led by significant growth in the company’s commercial generator set and alternator product lines. Growth was strongest in North America, the Middle East and India.

The Components business, which includes filtration, exhaust aftertreatment, turbochargers and fuel systems, reported significantly improved profitability, along with record quarterly sales. Tougher emissions controls around the world are driving strong gains in this business.

As a reflection of the company’s continuing strong performance, last week Fitch Ratings upgraded its ratings on Cummins’ debt, citing the “continued improvement in Cummins’ balance sheet, increased sales diversification, an improved competitive profile and solid operating performance in North America so far in 2007 despite the downturn in the heavy truck cycle” among other factors.

UBS Investment Research Analyst David Bleustein last week said, “We are raising our 2007 EPS to $7.60 from $6.50 previously, and introducing 2008 and 2009 EPS of $9.50 and $11.00, respectively. We maintain our Reduce 2 rating on CMI.”

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.