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.
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