RV industry supplier firm Cummins Inc. reports it lost $26 million during the first quarter due to the “severe downturn” in many of the industries in which it participates, including RVs.
Cummins, a supplier of diesel engines and Onan electric power generators to the RV industry, reports its total first quarter sales declined 18% to $1.35 billion. Its light duty auto and motorhome engine sales declined 43% to $121 million during the three months ended March 25.
The company’s power generation sales, including Onan, declined 6% during the first quarter to $309 million because “a weakening North American economy impacted shipments of small gensets to RV markets and reduced growth in the telecommunications and internet markets.”
The loss during the first quarter of this year compares with the profit of $42 million that Cummins earned during the first three months of 2000.
Cummins Chairman and CEO Tim Salso believes the company will return to profitability during the second quarter and it will earn around 90 cents a share for the full year 2001.