COLUMBUS, Ind. — Cummins has been caught up in the economic decline and has downgraded its expectations for the fourth quarter while taking action to control costs.
The company is laying off 500 employees globally by the end of the year and has also taken other cost-cutting measures. Now, it says it is forecasting 2008 sales to increase 9% over 2007, which is lower than the 12% previously expected.
“Like many other companies, Cummins is experiencing the negative impact of the global economic downturn,” said Tim Solso, Cummins chairman and CEO. “Our Engine and Components segments are seeing the most significant declines with revenues for the fourth quarter down 15% compared to what we anticipated in our previous guidance at the end of October.”
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