COLUMBUS, Ind. — Cummins has reported its third quarter sales and profit were the best ever for a Q3, and the second best quarter in the company’s history.
Q3 sales were up 10% over the same period in 2007 and net income was up 24% globally to US$229 million. Global sales led the charge, with 61% of the company’s revenue coming from non-US sales. That’s up from 52% a year ago, the company reported.
“Despite the significant challenges facing the US economy and signs of economic weakness in Europe, the company performed extremely well in the third quarter,” said Cummins chairman and CEO Tim Solso. “Even more importantly, we continue to meet or exceed our profitability targets as we grow our sales. These results, which keep us on track for a fifth straight year of record financial performance, are further proof that our strategy of diversifying our product line and expanding our geographic customer base is working.”
Heavy-duty engine sales jumped 21% in the quarter, driven by market share gains, Cummins reported. Medium-duty engine sales also surged 13%. Despite its strong performance, Cummins officials acknowledged more challenges lie ahead.
“Economic conditions in the US and Europe are not going to improve in the fourth quarter,” the company said in its financial report filed today. “Cummins is closely monitoring the economic situation around the world and is taking steps to appropriately adjust spending and investment levels to ensure that the company meets its financial commitments in the future.”
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