Sales of diesel engines and Onan-brand power generators to the RV industry helped Cummins Inc. report a third-quarter profit that was above stock market analysts’ expectations.
Cummins earned $39 million, or $1 per share, compared with $3 million earned in the third quarter of 2001. In the first nine months of this year, Cummins’ earnings totaled $23 million, compared with a net loss of $105 million incurred during the first nine months of 2001.
Market analysts had forecasted that Cummins would earn $35.5 million in the July-through-September period.
The Columbus, Ind.-based company’s total third-quarter sales revenue increased 17% to $1.65 billion and, in the first nine months of this year, its total sales climbed 5% higher to $4.44 billion.
Cummins’ total engine sales increased 35% in the third quarter to $1.03 billion and its light-duty automotive and motorhome engine sales increased 43% in the period.
The company’s power generation sales declined 15% in the third quarter to $315 million, although an increase in sales of Onan generators to the RV industry partially offset continued weak demand in commercial genset markets.
Meanwhile, Cummins Chairman and CEO Tim Solso believes the fourth quarter will be challenging as a result of an expected fall-off in heavy-duty truck engine sales because the demand for diesel engines from truck-builders was unusually high prior to Oct. 1. That’s the date when new diesel engine emission standards went into effect.
Solso believes Cummins’ earnings for all of 2002 will total $15.6 million to $19.5 million. Market analysts had anticipated Cummins’ would earn $24.2 million for the year.