Cummins Comments On Third Quarter Results

26 September 2000

Cummins Comments On Third Quarter Results

    COLUMBUS, Ind.--Sept. 26, 2000--Cummins Inc. today announced that the company's expected earnings per share for the third quarter of 2000 will be lower than the current consensus estimate of 85 cents per share as reported by First Call. The company expects to earn approximately 65 cents per share for the third quarter. It will report its quarterly financial results in mid-October.
    The company said that its earnings for the quarter were being affected by the substantial downturn in the North American heavy-duty truck market. It also indicated that the decline in the truck market was reducing demand for certain truck-related parts in its filtration business. Finally, the weakness of the euro and pound sterling was further contributing to the company's earnings projection.
    "While we are disappointed with our lower-than-anticipated earnings, we see promise that in a quarter when our shipments to the North American heavy-duty truck market will be down nearly 50 percent, we will still post solid earnings," said Tim Solso, Chairman and CEO of Cummins. "These earnings are due to our success in diversifying our business. They are also a direct result of the actions we have taken in both the short and long term to streamline and consolidate operations, improve quality, and hold down discretionary spending. We will continue to relentlessly reduce costs across all of our businesses as the softness continues in the North American heavy-duty truck market."