Cummins Inc., supplier of diesel engines and generators to the RV industry, earned $33 million during the first quarter, reversing the $31 million loss it incurred during the first three months of 2003.
Helping the Columbus, Ind.-based firm achieve profitability was a 28% increase in sales revenue during the three months ended March 28, to $1.77 billion.
“After experiencing some of the most challenging years in our company’s history, it is gratifying to see these very positive results,” said Tim Solso, chairman and CEO. “Along with increased sales volumes and growing interest in our numerous new products, we are seeing a payback on our intensive cost-cutting efforts.”
All four of Cummins’ divisions — engines, power generation, filtration and international distributor — were profitable for the second consecutive quarter, Solso reported.
Cummins benefitted from better than expected growth in North American heavy-duty truck engine sales. The company expects that market to grow by 30% this year.
Cummins’ new engine platforms, which will satisfy U.S. federal emission-control standards through 2006, allowed the company to gain “several percentage points” of market share in the heavy-duty truck segment, according to the company.
Sales of the engines that power the Dodge Ram pickup grew by 21% during the first quarter of this year and exceeded the record levels set during the first quarter of 2003. Sales of those engines are expected to increase by 10% during the full year 2004, the company added.
Cummins’ power generation sales increased 38% with its commercial market sales increasing 40% during the recently completed quarter. Demand for Cummins generators was strong in North America, China, the Middle East and South America.