COLUMBUS, Ind. – A strong performance across all its business units helped marine engine and genset manufacturer Cummins Inc. (NYSE: CMI) post first-quarter net earnings of $33 million, or 76 cents per share, the company said in a statement today.
This compares to a loss of $31 million, or 79 cents a share, in the first quarter of 2003.
Sales for the first quarter totaled $1.77 billion, a 28-percent increase over the same period last year, Cummins reported
"Along with increased sales volumes and growing interest in our numerous new products, we are seeing a payback on our intensive cost-cutting efforts,” said Tim Solso, Cummins chairman and CEO. "Our optimism about the ongoing strength of our business has caused us to increase our second quarter guidance to $1.20 to $1.30 a share from $1.00 to $1.10, and for the full year to $4.40 to $4.60 from $4.00 to $4.20.”
Total first-quarter sales for the Engine Business were $1.1 billion, up 40 percent from first-quarter 2003 sales of $816 million, according to Cummins. Approximately $90 million of the sales increase was due to a change in the company's reporting of intersegment transactions.
The Power Generation Business reported first quarter sales of $369 million, up 38 percent from a year ago, the company reported.
Power Generation's commercial markets experienced solid 40 percent growth in the quarter, with increased demand in North America as well as in several international markets, including China, the Middle East and South America, Cummins said. Sales in the consumer markets, primarily related to recreational vehicles, were up strongly from both the previous and prior-year quarters, setting new volume records, according to the company.
Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related products, including filtration and emissions solutions, fuel systems, controls and air handling systems for a variety of industries, including the automotive and truck markets.