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Cummins' 3Q warning
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September 26, 2000: 8:15 a.m. ET
Downturn in heavy-truck market, weak euro blamed for drop in profit
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NEW YORK (CNNfn) - Diesel engine maker Cummins Inc. Tuesday became the latest parts supplier to warn of disappointing third-quarter profit.
The Columbus, Ind.-based company blamed the recent downturn in heavy truck production as well as the weak euro for its problems. It said that shipments to heavy truck makers are off nearly 50 percent in the period.
 The company said it now expects third-quarter profit of 65 cents a share. Analysts surveyed by earnings tracker First Call had forecast an 85-cent-a-share profit, which was already off the $1.35 a share reported a year ago.
A number of other suppliers of heavy truck parts, such as Eaton Corp. (ETN: Research, Estimates) and Dana Corp. (DCN: Research, Estimates), warned they would miss earnings forecasts earlier this month. They were responding to heavy truck manufacturers such as Freightliner LLC, a unit of DaimlerChrysler Corp. (DCX: Research, Estimates) and the largest North American truck maker, and Navistar International Corp. (NAV: Research, Estimates) that announced layoffs and production cutbacks within the last month because of declining truck sales.
The weak euro reduces the revenue the company receives on European sales. A number of major companies that have issued results warnings for the current period have mentioned the weak euro as part of the reason.
Cummins is the largest maker of diesel engines of more than 200 horsepower used in heavy trucks.
Shares of Cummins (CUM: Research, Estimates) gained 13 cents to $31.38 in trading Monday. 
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Cummins Inc.
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