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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCummins Inc. on Wednesday posted lower profit and revenue in the third quarter as demand fell for its engines in nearly all parts of the globe.
The Columbus-based manufacturer of diesel engines reported a 22-percent decline in profit, from $452 million, or $2.35 per share, in the year-ago period to $352 million, or $1.86 per share, in the latest quarter.
Excluding one-time items, Cummins earned $1.78 per share. Analysts at Thomson Reuters had expected earnings of $1.83 per share.
Quarterly revenue fell 11 percent, to $4.1 billion.
The slowdown is prompting Cummins to delay or cancel projects and reduce its work force by 1,000 to 1,500 employees by the end of the year, said Tom Linebarger, the company’s chairman and CEO, in a prepared statement. About 150 of those employment cuts will be in Indiana.
“Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets,” he said. “We are working to respond to the conditions now to ensure the long-term strength of the company and to best serve the many stakeholders who rely on Cummins for long-term success.”
Sale were disappointing among all parts of the company, dropping 14 percent in the engine segment, 8 percent in the parts segment, and 7 percent in both the power generation and distribution areas.
Cummins lowered its 2012 revenue estimate to $17 billion from $18 billion.
Company shares dipped 1 percent in premarket trading, to $92.65 each.
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