Cummins Inc. Chairman and CEO Tim Solso is pleased the company reported a marginal profit during its third quarter despite “the worst deterioration I’ve experienced in virtually everyone of our North American end markets.”
The company, a supplier of diesel engines and generators to the RV industry, earned $3 million on sales of $1.41 billion during the three months ended Sept. 23.
During the three months ended Sept. 24, 2000, Cummins earned $25 million on sales of $1.57 billion.
Cummins’ total engine sales declined 20% during its third quarter to $767 million and its engine sales to the light-duty auto and RV markets slid 22% lower to $165 million.
The company’s engine business lost $18 million before interest and taxes during its third quarter.
However, Cummins saw sales revenue at its Power Generation division, which includes its Onan Corp. subsidiary, an RV industry supplier, increase 11% during its third quarter to $371 million.
The power generation business earned $29 million before interest and taxes during the three months ended Sept. 23.
Because of cost cutting moves made earlier at Cummins, Solso believes the firm will “remain profitable despite further weakening of our markets.”