Cummins' 1Q Profits Improves
Diesel engine maker Cummins Inc. earned $143 million or $1.42 a share in the first quarter, up from $135 million or $1.35 a year earlier.
Sales rose to $2.82 billion from $2.68 billion in the first quarter of 2006, the company said Thursday.
Cummins said it experienced a decline in the heavy-duty truck engine market, owing to slump-ing truck sales following the implementation of the Environmental Protection Agency’s new emission standards, which went into effect in January. The decline in the heavy-duty truck sector was “as expected,” Cummins said.
Engine sales fell 3% to $1.76 billion. Global heavy-duty truck engine sales plummeted 45% from the previous first quarter to $424 million.
In early April, Cummins completed a two-for-one stock split. The current quarter’s earnings per share reflect that split, Cummins said.