Cummins Anticipates Lower First Quarter Sales
Diesel engine and electric power generator manufacturer Cummins Inc., a supplier to the RV industry, anticipates its first quarter sales will be 10% below its fourth quarter 2000 revenues due to “continued deterioration of the North American truck markets, further reductions in the buildrate by DaimlerChrysler for the Dodge Ram pickup truck and the slowdown in the RV and other consumer-oriented markets.”
Cummins reported a fourth quarter net loss of $120 million on sales of $1.61 billion. For the full year 2000, the company earned $8 million on sales of $6.6 billion. The fourth quarter and full year 2000 results included a $160 million restructuring charge.
Chairman and CEO Tim Solso said Cummins expects announce more cost-cutting programs during the first quarter, which could create in more restructuring costs.