Columbus, Ind.-based Cummins Inc. continues to take steps to reach a target of cutting up to 1,500 jobs from its global work force by the end of the year.
The company confirmed to Inside INdiana Business that it will lay off at least 150 workers in southern Indiana. Another 126 workers will be transferred to an engine plant in Columbus.
Determinations about further cuts continue.
The layoffs are expected to impact the MidRange and Fuel Systems plants in Columbus or the engine operation in Seymour.
A union official was quoted earlier this week as saying his membership, which includes research, technology and support staff, would not be subject to job cuts.
Cummins responded at that point by saying determinations were still being made.
Cummins Inc. again lowered its guidance for the year and unveiled plans to cut up to 1,500 employees as the engine maker looks to cut costs in response to the weakening global economy.
MarketWatch reported that shares sank 5.6% to $86 after hours as the company also said third-quarter revenue is expected to miss Wall Street’s expectations. Through the close, the stock is off 4.8% over the past three months.
Cummins reduced its full-year revenue estimate by $1 billion, now projecting sales of $17 billion. It last cut its revenue projections in July. The company expects earnings before interest and taxes to be approximately 13.5% of sales for the year, compared to its prior view of 14.25% to 14.75%.
Cummins expects revenue of about $4.1 billion in the third quarter, below the $4.42 billion projected by analysts polled by Thomson Reuters.
Chairman and CEO Tom Linebarger said the company continued to see weak economic data in several regions increase uncertainty about the direction of the global economy.
“As a result of the heightened uncertainty, end customers are delaying capital expenditures in a number of markets, lowering demand for our products,” Linebarger said.
The company saw the most significant changes in North American heavy duty truck and international power generation markets, while demand in China weakened in most end markets. Cummins also lowered its forecast for global mining revenue.
Cummins unveiled several cost-cutting actions, including planned work week reductions, shutdowns at some manufacturing facilities and plans to reduce its workforce by 1,000 to 1,500 people by the end of the year.
In July, Cummins reported its second-quarter earnings fell 7.1% as revenue was hurt by currency fluctuations, though growth in North America offset weakness in international markets — especially China and Brazil.
It is scheduled to release its third-quarter results on Oct. 30.
Cummins Inc. announced today (Oct. 1) that it has received certification for its ISX15 engine from the U.S. Environmental Protection Agency (EPA), meeting both the EPA 2013 regulations and the new greenhouse gas and fuel-efficiency rules that will take effect in 2014. According to a press release, Cummins 2014 greenhouse gas certification is the first engine certificate issued by the EPA.
Cummins ISX15, the top-selling engine in the heavy-duty truck market, will deliver higher levels of fuel efficiency and reliability in 2013. Efficiency improvements to the base engine include optimized combustion and reduced parasitic load through high-efficiency water, fuel and lube pump systems, and the ISX15 will achieve up to 2 percent fuel economy improvement over today’s product. Cummins ISX15 for 2013 uses the same proven base engine with the XPI fuel system, VGT Turbocharger, Cummins Aftertreatment System with Diesel Particulate Filter (DPF) and Selective Catalytic Reduction (SCR) technology, and fully integrated electronics.
“Cummins 2013 truck engines will deliver better fuel economy with no major hardware changes,” said Jeff Jones, Cummins Vice President – Sales and Market Communications. “This results in improved reliability due to stable architecture.
“The certification of the ISX15 demonstrates Cummins commitment to deliver products that exceed both environmental and customer requirements. We are confident that we’ll receive certification for our other on-highway engines well before the end of the year,” Jones continued.
Cummins’ entire lineup of on-highway engines for truck, bus, RV and specialty-vehicle markets will enter production on Jan. 2, 2013. All engines are expected to be certified a full year early to the 2014 greenhouse gas and fuel-efficiency rules.
Columbus, Ind.-based engine maker Cummins Inc. says it has instituted a global hiring freeze for at least the rest of this year with an uncertain impact on announced expansions of Indiana operations.
According to The Republic, Columbus, the move by the company comes after seeing a recent drop in sales in some of its markets in North America, China and Brazil. The company said that it was taking necessary steps to manage growth by reducing costs.
Cummins has seen substantial growth in recent years and says it has a record worldwide work force of 46,200 people. Cummins has some 7,800 Indiana workers, including its facility in Columbus that builds motorhome engines.
Company spokesman Jon Mills said he couldn’t discuss how the freeze would affect expansions of its Columbus offices or a $219 million project at its Seymour, Ind., factory.
Columbus, Ind.-based engine maker Cummins Inc. reported adjusted quarterly profit that beat Wall Street estimates as sales in North America helped offset weakness in international markets, especially China and Brazil.
Reuters reported the company said on Tuesday (July 31) that revenue declined 4% to $4.45 billion, in line with Wall Street estimates. Excluding the effects of divestitures and currency fluctuations, revenue was flat. Cummins, a major supplier of diesel engines to the RV industry, said net earnings were $469 million, or $2.47 per share, down from $505 million or $2.60 a share a year earlier.
However, gross margins were at record highs in the quarter and forecast improved margins for the full year despite flat revenue, helping drive shares up nearly 8% at midday.
Cummins executives said the company was cutting costs, including tightening up on travel and looking to freeze hiring in some parts of the company, with uncertain global economic conditions pressuring truck sales in emerging markets.
“It’s a much more volatile economy than we were looking at in the first quarter of the year and much harder to predict,” CEO Tom Linebarger told analysts on a call. “However, our view still is that developing countries will be growing faster than developed countries and investing in infrastructure.”
Reuters reported that excluding gains from divestitures, Cummins earned $2.45 per share, topping the average Wall Street forecast of $2.28, according to Thomson Reuters I/B/E/S.
“Despite lower revenues, Cummins did a good job improving gross margins on price improvement, mix and manufacturing efficiencies,” S&P Capital IQ equity analyst Jim Corridore wrote in a note. “We think Cummins is well positioned in the current environment and should see operating leverage when revenue trends improve.”
Earlier this month, Cummins cut its sales forecast on weaker orders from truck and power generation customers, a stronger dollar and softer-than-expected demand in emerging markets.
In the engine segment, sales declined 2%. Improved North American truck and construction market demand was offset by lower sales to China construction, Brazilian truck and North American oil and gas markets.
Component sales were unchanged. Higher demand in North America and Brazil was offset by lower demand in Europe and China as well as the impact of divestitures completed in 2011.
Power generation sales were also unchanged as higher sales in North America offset lower demand in Europe, China and Latin America.
Sales in the distribution segment rose 1%, with higher parts and service growth in several regions more than offsetting weaker demand in the markets for North American oil and gas and Middle East power generation.
“Second-quarter gross margins were at record levels as we continue to drive improvements in productivity and quality,” Linebarger said.
Earnings before interest and taxes (EBIT) were $669 million or 15% of sales. Cummins expects full-year revenue of $18 billion, with EBIT between 14.25% and 14.75% of sales.
To view the entire report click here.
Engine builder Cummins Inc. is in a strong position to continue expanding in global markets and meet its long-term growth targets, Cummins Chairman and CEO Tom Linebarger told shareholders at the company’s annual meeting today.
According to a press release, Linebarger highlighted Cummins’ 2011 results, including record financial performance with sales up 36% from 2010 to more than $18 billion, and earnings before interest and tax (EBIT) up 54% to $2.56 billion. Cummins’ outstanding 2011 performance and the strong start to 2012 positions the Company to achieve its goal of $30 billion in sales in 2015, he said.
“Our technology leadership in markets around the world enables Cummins to capitalize on the macro trends that are shaping the global economy — stringent emission standards, rising energy prices, globalization and infrastructure growth,” Linebarger said.
The company’s profits have tripled over the past decade as investments in growth, new products and leading-edge technology have paid off, he said. Cummins’ strategy to focus on five growth accelerators makes it possible to meet the challenges of the changing global economy — adopt a growth mindset, develop from a multinational to a global company, achieve supply chain excellence, deliver Customer Support Excellence (CSE), and invest in leadership development.
“I’m proud to report a strong year in 2011 with record financial performance and I believe our future is even brighter as we capitalize on our current strengths and future opportunities,” said Linebarger said. “However, I am even more proud of the hard work and commitment of the 44,000 Cummins employees who come to work each day not only making a difference here, but having a positive impact on the community as well.”
Diesel engine maker Cummins Inc. reported a 33% rise in first-quarter profit due to strength in the North American truck, generator and construction markets, and a growing global mining business .
According to Reuters, the Columbus, Ind.-based company reported net earnings of $455 million, or $2.38 per share, compared with $343 million, or $1.75 per share, a year earlier while sales rose 16% to $4.5 billion.
Cummins and other U.S. industrial companies – including Caterpillar Inc. – are relying on strength in North America and mining to offset troubles in big emerging markets and Europe. Revenue in North America grew 40% in the first quarter for Cummins and mining engine sales grew 19%.
“Cummins continues to benefit from its geographic diversification and its leadership position in a number of end markets as evidenced by our very strong first quarter results,” said Tom Linebarger, chairman and CEO.
The company also affirmed its forecast that earnings before interest and taxes would represent 14.5% to 15% of sales in 2012, or nearly $3 billion. That compares with $2.56 billion in 2011.
To view the entire report click here.
Cummins Inc. today (April 24) announced a significant expansion of its Seymour, Ind., campus that includes investing $219 million in new construction and the addition of 290 jobs to support the company’s global high-horsepower engine business.
According to a press release, Cummins Chairman and CEO Tom Linebarger was joined by Indiana Gov. Mitch Daniels, U.S. Rep. Todd Young and Seymour Mayor Craig Luedeman at an event that was attended by the 525 employees of the Seymour engine plant.
This is the third major announcement in Seymour in two years and in that time the company has added new engineering and production test cells, constructed a new shipping and receiving dock, enlarged the energy center and begun work on the QSK95 and the QSK120, the most powerful high-speed diesel engines in the world.
As part of the expansion, Cummins is adding new warehouses, more engineering and production test cells, a new office building that will house up to 500 people, a cylinder block line and parking for the new employees. Included is a new manufacturing facility for aftertreatment components for high-horsepower engines.
The new jobs are engineering and advanced manufacturing positions that will support the company’s global high horsepower business.
Cummins Inc. says it will be ready to ship its full line-up 2014-compliant heavy-duty diesel and natural gas engines a full year ahead of deadline, and they’ll feature improved reliability and fuel economy.
As reported by Trucking Info, Cummins announced at the Mid-America Trucking Show Wednesday (March 211) in Louisville, Ky., that the engines will deliver up to 2% fuel economy improvement over today’s products and will use the same proven high-pressure common rail fuel systems, VGT Turbocharger and fully integrated electronics for improved combustion efficiency, performance and reliability.
Base engine improvements reduce the parasitic load on the engine through high-efficiency water, fuel and lube pump systems. Cummins engines will meet the 2014 fuel efficiency and greenhouse gas standards beginning in January 2013.
“We met the EPA 2010 standard on time, and our engines have earned their industry-leading reputation for great reliability and fuel economy. Our product development teams are delivering even better products where it counts — to our customers — and our engines are meeting the 2014 fuel-efficiency and GHG standards a full year early,” said Rich Freeland, Cummins vice president and president of engine business.
Cummins will build on the success of its EPA 2010 mid-range and heavy-duty products with the same capable base engines and emissions architecture for 2013. All commercial vehicle diesel engines feature the Cummins Emission Solutions EcoFit Ultra-Low Emissions exhaust aftertreatment system, integrating a diesel particulate filter and selective catalytic reduction. On-board diagnostics, proven on hundreds of thousands of engines since 2007, will be extended across the entire lineup.
In addition to the broad diesel lineup from the ISB6.7 to the ISX15, Cummins will continue to offer the Cummins Westport ISL G, the top-selling natural gas engine, and it will introduce the Cummins Westport ISX12 G into full production in 2013. Cummins Westport is a joint venture between Cummins Inc. and Westport Innovations.
Columbus, Ind.-based Cummins Inc. announced that Carole Casto, a leader in the company’s Corporate Responsibility program, will be Cummins’ new executive director of corporate communications.
“As Cummins grows into a global company, effective corporate communications takes great planning and strategic thinking to make sure the right message reaches the right audience. Carole has demonstrated she has those skills,” said Marya Rose, vice president and chief administrative officer at Cummins.
Casto currently serves as director of Community Engagement in Corporate Responsibility, playing a key role in the program’s expansion outside the United States. She also helped lead the process that resulted in the department focusing on three key issues: education, the environment and social justice/equal opportunity
Casto is a graduate of Marquette University in Milwaukee, Wis., and joined Cummins in 2003. She will continue working on some key Corporate Responsibility initiatives as she makes the transition to her new role during the first quarter of the year. She will continue to be based in Indianapolis.