COLUMBUS, Ind. — Cummins has announced strong first quarter earnings, despite a drop-off in sales to the heavy- and medium-duty truck engine markets. Despite the decrease, which the company blamed on the increased cost of the new EPA-certified engines, results from Cummins’ other operations led the company to higher sales and net income for the quarter.
For the quarter, Cummins reported sales of $2.82 billion, up 5.2% from $2.68 billion during the same period in 2006. Net income of $143 million increased 5.9% from $135 million in the same period last year.
Earnings before interest and taxes (EBIT) decreased 4.7% to $243 million during the first quarter. This reflects lower sales in the North American heavy-duty truck market, investment in global growth opportunities and costs associated with introducing 2007 emissions-compliant products.
“Despite the predicted decline in the North American heavy-duty truck market, we achieved outstanding results in the first quarter,” said Tim Solso, chairman and CEO of Cummins. “These results show our strategy is working, and we expect that type of performance to continue the rest of this year and beyond.
“We did what we said we would do continued to deliver superior products and service to our customers, even in the face of significant changes to US emissions regulations. Despite our outstanding performance in the first quarter, we don’t intend to relax. We remain committed to making the 2007 product launch cycle the best in our history and we are focused on controlling our costs and providing the best possible products and service.”
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