Foreign Sales Boost Cummins, RV Interests Off
Columbus, Ind.-based engine builder Cummins Inc. reported a 25% increase in third-quarter profit as strong demand from overseas offset soft North American sales.
Cummins earned $229 million compared with $184 million for the same quarter last year. Sales rose 9.5% to $3.69 billion from $3.37 million in the year-ago period.
Non-U.S. sales represented 61% of Cummins’ sales in the recent quarter, compared with 52% in the same quarter a year ago. Sales outside of North America at the company’s power generation segment rose 29%, while international sales at its distribution segment rose 28%.
Despite its strong overall performance, the company is experiencing significant declines in some of its consumer markets as the U.S. economy continues to deteriorate. Revenue from the light-duty automotive and recreational vehicle markets fell 56% from a year ago as engine shipments to Chrysler for the heavy-duty Dodge Ram pickup fell 75%. Within Power Generation, sales in the consumer line of business fell 34% in the quarter, driven primarily by sharply lower sales to the recreational vehicle and residential standby generator markets in the U.S.
Despite the continuing economic softness in some markets, Cummins expects revenue to grow in 2008 by 12% from last year.