Cummins Inc., the primary supplier of diesel engines to motorhome chassis builders Freightliner and Spartan, returned to profitability during the second quarter thanks, in part, to the strength of the RV market, the company reported today (July 19).
Cummins, which also builds Onan power generators for the RV sector, earned $13 million during the April-through-June period, compared with an $82 million loss a year earlier. This occurred despite flat total sales revenue at $1.46 billion.
The company still ended up $16 million in the red during the first half of this year, but that is much smaller than the $108 million net loss it incurred during the first half of 2001.
Although Cummins reports that “the majority of our end markets remain at very low levels,” its RV and Dodge Ram businesses “experienced particular strength.”
Sales of Cummins “light duty auto and RV” engines increased 18.5% during the second quarter to $179 million, although its sales of engines in the category during the first half of this year were down 42% to $336 million, when compared with the first half of last year.
Cummins Chairman and CEO Tim Solso believes the company will remain profitable because it has lowered its costs and because of the “strength in our Chrysler and RV business.”