Cummins’ profit rises on strong overseas sales

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Strong demand overseas helped Cummins Inc. realize stronger-than-expected quarterly results, the Columbus-based diesel engine
manufacturer announced Tuesday morning.

Cummins posted a second quarter profit of $246 million, or $1.25 a share, up from $56 million, or 28 cents a share, during
the same time frame last year.

Quarterly revenue rose 32 percent, to $3.2 billion.

Analysts had expected the company to report a profit of 92 cents a share on revenue of $2.8 billion, according to Thompson
Reuters.

Cummins said sales outside the United States, which account for about two-thirds of its annual revenue, jumped 51 percent
during the quarter.

“The work we have done to strengthen our manufacturing operations during the downturn has resulted in significant productivity
gains, and we continue to benefit from our leadership position in large and growing international markets such as China, India
and Brazil,” Cummins Chairman and CEO Tim Solso said in a prepared statement.

Overseas sales helped offset continued weakness in the North American commercial truck market.

Cummins raised its forecast for the full year and  now expects to report earnings before interest and taxes of 12 percent
of sales on revenue of $13 billion.
 

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