June 2007 -- Cummins Inc. demonstrated strong first quarter earnings, led by significant sales growth in almost every market. Power Generation and Distribution results, plus a lowered cost structure, more than offset impact of emissions regulation changes. (The heavy-duty truck market -- still the company's largest -- declined, as expected, due to lower truck sales resulting from new diesel emissions standards.)
Despite the truck market decline, the company's ability to produce new emission-certified engines from the beginning of the year resulted in market share gains with some customers, and an improved cost structure allowed the heavy-duty business to remain profitable.
Based on the company's first quarter results and updated forecast for the rest of the company, Cummins increased its full-year profit guidance to $6.00 to $6.50 a share, up from $5.50 to $5.75 a share.
For the first quarter, Cummins reported sales of $2.82 billion, up 5.2% from $2.68 billion during the same period in 2006. Net income of $143 million ($1.42 per diluted share) increased 5.9% from $135 million ($1.35 per diluted share), due to the company's focus on strengthening its balance sheet and lowering costs. All earnings per share amounts reflect the two-for-one stock split distributed on April 9, 2007.
For 2006, Cummins reported net income of $715 million on sales of $11.4 billion.
