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Engine builder Cummins Inc. today (Oct. 20) reported record sales for the second consecutive quarter as third-quarter profits substantially exceeded the company’s earlier forecasts.
Sales were strong across all business segments and in most markets, led by North American heavy-duty truck engine sales and record revenues in the company’s Power Generation segment, which includes Onan Corp., of Minneapolis.
Cummins of Columbus, Ind., reported record third-quarter revenues of $2.19 billion, a 34 percent increase from $1.63 billion in the same quarter in 2003. Net earnings for the quarter were $116 million compared to $24 million in 2003.
The company’s Power Generation business posted sales of $502 million – the unit’s fourth straight quarterly profit – compared to $363 million in 2003.
“Demand for our products continues to be extremely strong,” said Cummins Chairman and CEO Tim Solso. “Our sales were stronger than expected in most markets, led by the North American heavy-duty truck engine market, where our sales more than doubled from the same time last year and where we continue to gain market share.”
As a result of continued performance improvement, Cummins increased its earnings guidance for the full year.
The company now expects to earn $7.10 to $7.20 a share in 2004, up from the previous guidance of $5.55 – $5.75 a share, and between $2.15 and $2.25 a share in the fourth quarter.