Cummins Inc. today reported third-quarter revenue of $4.1 billion, an 11-percent decrease 11 from $4.6 billion in the third quarter of 2011. Revenues in North America grew 2 percent while revenues from international markets declined 21 percent.
Earnings before interest and taxes were $496 million or 12.0 percent of sales compared to $640 million or 13.8 percent of sales in the third quarter of 2011.
Net income attributable to Cummins in the third quarter of 2012 was $352 million ($1.86 per diluted share) compared to $452 million in the same period a year ago ($2.35 per diluted share).
“Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets,” said Tom Linebarger, chairman and CEO. “We have been responding to the conditions by delaying or cancelling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses, and reducing our workforce by 1,000 to 1,500 people by the end of this year. We are continuing to fund projects that are important for future growth and meeting commitments to customers. We are working to respond to the conditions now to ensure the long-term strength of the company and to best serve the many stakeholders who rely on Cummins’ long-term success.”
Third-quarter Engine Segment sales were $2.5 billion, down 14 percent from $2.95 billion in the year-ago period. Lower demand in North American heavy-duty truck, medium-duty truck, oil and gas and mining markets, lower demand for trucks in Brazil and in the construction market in China offset stronger demand for light-duty truck and construction engines in North America.
Power Generation segment sales in the quarter were $814 million, down 7 percent from $874 million in 3Q11. Higher revenues in North America offset the lower demand in Europe, China, the Middle East and Latin America, the company said.
Based on the current forecast, Cummins expects full-year revenues to be $17 billion, with EBIT in the range of 13.5 percent of sales.
Headquartered in Columbus, Ind., Cummins Inc. is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.