Cummins 1st-quarter net jumps, revenue up 1.6%

Wednesday, Apr 28, 2010

Cummins Inc., /quotes/comstock/13*!cmi/quotes/nls/cmi (CMI 72.40, +2.09, +2.97%) the Columbus, Ind., producer of engines and related technologies, reported first-quarter earnings leaped on 1.6% higher revenue. Net income reached $149 million, or 75 cents a share, from $7 million, or 4 cents, in the year-earlier quarter. Revenue reached $2.48 billion from $2.44 billion. A survey of analysts by FactSet Research produced a consensus estimate of 34 cents of profit on $2.42 billion of sales. Earnings before interest and taxes were $266 million, or 10.7% of sales, against $94 million, or 3.9%, a year earlier. First-quarter demand was stronger in China, India and Brazil "as those countries continue their recovery from the recession in 2009," Cummins said in a Tuesday statement. North American demand for medium-duty truck and bus and heavy-duty engines fell 80% from a year earlier. For 2010, the company estimates sales of $12 billion with a margin of 10% of sales based on profit before interest and tax.

Source: MarketWatch