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Cummins Inc. reported its fourth-quarter net income rose 13%, helped by strong North American demand for medium-duty and heavy-duty engines ahead of tightened emissions standards that took effect this year.
Cummins’ said net income rose to $189 million from $167 million a year earlier, noting that research tax-credit legislation signed during the fourth quarter added $10.3 million to earnings.
The Columbus, Ind., maker of engines and power generators said sales in the three months ended Dec. 31 rose 10% to $3.03 billion from $2.75 billion.
For the full year, Cummins reported sales of $11.36 billion, up 15% from $9.92 billion in 2005. Net earnings rose 30% to $715 million from $550 million the previous year.
Cummins said fourth-quarter sales at its engine segment, its largest, rose 6% to $1.95 billion as North American heavy-duty truck engine shipments climbed 14% and North American medium-duty engine shipments increased 57% in advance of the 2007 emissions standards change. The shipments offset 15% drop in shipments to Chrysler during the quarter.
Cummins’ power generations segment, which includes Minneapolis, Minn.-based Onan Corp., increased sales 14% to $658 million from $575 million.