Boston, MA 10/30/2013 (wallstreetpr) – Cummins Inc. (NYSE:CMI) which is a mega company for making engines and other vehicle components in the US posted results for the third quarter that fell below analysts’ expectations. The company posted lower than expected quarterly profits that essentially mean a decline in its full year outlook. This essentially means the company expects to report a decline in revenue by 3% for the full F2013. The company posted net earnings totaling $362 million translating to $1.94 per share for the third quarter of 2013. This is a decline in comparison to Zacks consensus earlier estimates of $2.10 per share.
The posted earnings were on the other hand a high as compared to the same quarter the last financial year (F2012) of 336 million or $1.78 per share. It was not all bad results from the Q3 results as earnings rose by 4% for the quarter totaling $4.3 billion. This was mostly driven by the huge demand of Cummins products in North America. North America seems to be the best market for the company as revenues in this markets increased by 11% while they experienced a decline of 4% in Europe.
Cummins Inc. operating income stood at $524 million an increase of 6.3% a year ago at $493 million. Cummins earnings before interests and taxes were deducted for the quarter stood at $536 million an increase of 8.1% a year ago. Sales in the Engine segment fell to a low $2.5 billion a decline of 1% as compared to the same quarter the last financial year. This was due to a decline in stationary power, global mining and light duty on the US highway market. Cummins EBIT segment increased by 13.8% to hit a high of $272 million or 10.9% sales as compared to $239 million a year ago. Sales in the components segment grew to $1.1 billion due to a strong highway demand in Europe, China and North America.
