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Cummins 2Q in high gear
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July 15, 1999: 8:48 a.m. ET
Strong North American sales help engine maker flatten Wall St. estimates
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NEW YORK (CNNfn) - Strong North American sales helped Cummins Engine Co. Inc. shift into high gear in the second quarter, making roadkill out of Wall Street earnings estimates.
Net earnings for the quarter were $58 million, or $1.50 per diluted share, solidly beating the First Call consensus of analysts' estimates of $1.21 per share. During the same period a year earlier, the company reported net earnings of $53 million, or $.138 per share.
Cummins revenue for the second quarter was $1.67 billion, up from $1.63 billion during the second quarter of 1998.
The company credited strong growth in the North American automotive, construction and power generation engine markets for the improved performance. Cummins also said its Asian business, hurt by the region's financial slowdown, was beginning to turn around as well.
Worldwide, the company had sales of $466 million in its heavy duty truck engine division, a 17 percent increase over the same period one year ago.
Cummins, based in Columbus, Ind., makes engines for a variety of automotive, construction and power generation uses, along with other industrial products.
For the first six months of this year, it earned $82 million, or $2.13 per diluted share, compared with $60 million, or $1.55 per share, for the same period a year earlier. Revenue increased to $3.2 billion from $3.1 billion.
Cummins (CUM) shares closed Wednesday at 56-15/16, up 3/16.
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Cummins Engine
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