Cummins Posts 56% Jump in 2Q Profits
Diesel engine manufacturer Cummins Inc. on Thursday (July 27) posted a 56% jump in second-quarter profit on strong sales across all of its segments.
The Columbus, Ind., company earned $220 million in the quarter, ended July 2, compared with $141 million the previous year. Revenue rose 14% to $2.84 billion from $2.49 billion in the year-ago period.
The 2006 quarter’s results included a $28 million gain related to the favorable resolution of prior-year tax audits.
Cummins said all of its business segments reported double-digit sales increases for the quarter. Engine revenue, driven by North American recreational vehicle and heavy-duty markets, rose 14% to $1.9 billion. Power generation sales, which include Minneapolis, Minn.-based subsidiary Onan Corp., rose 21% to $598 million.
The company’s components segment posted a 10% sales gain to $563 million, and distribution revenue grew 13% to $336 million.