Cummins warns on sales but hikes dividend

July 10 (Reuters) - U.S. engine maker Cummins Inc cut its full-year sales forecast on Tuesday, citing weaker U.S. orders from truck and power generation customers, a stronger dollar and softer demand in emerging markets, but it also raised its dividend.

Cummins said it now expects second-quarter sales of about $4.45 billion. It said full-year sales are going to be "in line" with 2011's, rather than growing by 10 percent, as it had earlier forecast.

Analysts, on average, had expected second-quarter sales of $5.1 billion and 2012 sales of just under $20 billion.

Separately, Cummins said it would raise its quarterly dividend by 25 percent to 50 cents a share.

Cummins shares were down 4.3 percent at $91.29.

Cummins, due to report results on July 31, is the second major industrial company this week to warn about quarterly results. On Monday, Dover Corp cut its 2012 profit forecast, citing weakness in Europe.