Cummins CEO: ‘Sales have weakened even faster’
COLUMBUS (Inside INdiana Business) — Columbus-based Cummins Inc. (NYSE: CMI) is reporting third-quarter net income of $622 million, compared to $692 million during the same period last year.
The powertrain manufacturer says quarterly revenues are down three percent from a year ago driven mostly by lower demand for trucks and construction equipment.
“While we expected to see a moderation of demand in the second half of the year, sales have weakened even faster than we anticipated,” said Cummins Chairman and Chief Executive Officer Tom Linebarger. “Cummins is taking actions to align our cost structure with the lower revenues while maintaining investment in products that will deliver sustainable growth and profitability.”
Linebarger says based on the current forecast, Cummins now expects 2019 revenue to decline two percent compared to a prior forecast of revenues being flat.
The company says the reduction in the revenue forecast is based on expected lower truck production in North America, India, Brazil, and Europe.
Click here to read the rest of the third quarter results for Cummins.