10/25/2011 9:15:00 AM
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Cummins Inc. said Tuesday its third-quarter profit rose 60% from a year ago, but the engine maker trimmed its full-year revenue outlook due to â€œuncertainty around the macro-economic environment.â€�
Third-quarter net income climbed to $452 million, or $2.35 a share, from $283 million, or $1.44, a year ago. Sales for the quarter ended Sept. 25 rose 36% to $4.6 billion.
Cummins said it has lowered its full-year sales forecast to $17.5-18 billion. The company had previously projected $18 billion, Reuters reported.
In a statement, President and Chief Operating Officer Tom Linebarger said â€œgovernment actions to reduce inflation in India and China resulted in softer near-term demand than we previously expected.â€�
â€œThis, along with the recent strengthening of the US Dollar, has caused us to slightly soften full year revenue guidance to a range of $17.5 to $18 billion, which would represent an increase of over $4 billion or over 30 percent compared to 2010,â€� Linebarger said in the statement.
All company segments produced double-digit growth over the prior year, Cummins said.
Engine sales jumped 43% to $2.96 billion, driven by on-highway markets in North America and Latin America and strong worldwide oil and gas, mining and construction activity. Engine EBIT was $349 million, or 11.8% of sales, Cummins said.
Its components segment, driven by higher demand in on-highway markets in the US and Europe, grew 32% to $1.02 billion. Components segment EBIT was $113 million, or 11.1% of sales.
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