* 4th-qtr earnings top estimates
* But 2014 forecast implies EPS below expectations
* Shares lower in early trading
By James B. Kelleher
Feb 6 Cummins Inc posted
higher-than-expected quarterly profit as strong sales of engines
and other vehicle components to truck and construction-equipment
makers in North America, Europe and China, offset weakness in
emerging markets, including India and Mexico.
But the company also provided a preliminary forecast for
2014 sales and profits that fell short of expectations, sending
its shares lower in early trading.
Cummins reported fourth-quarter net earnings of $432
million, or $2.32 a share, up from $404 million, or $2.14 a
share, during the comparable quarter last year.
Sales rose 7 percent to $4.6 billion.
Analysts, on average, expected the Columbus, Indiana-based
company to post a profit $1.98 a share on sales of $4.2 billion,
according to Thomson Reuters estimates.
While weakness in global mining markets continued to weigh
on sales of engines to makers of earth-moving mining equipment,
Cummins said sales of engines used to power construction
equipment were strong during the quarter.
The company also reported higher demand for on-highway truck
components in North America, Europe and China.
Looking forward, the company said it expects to post full-
year 2014 revenues growth of between 4 percent and 8 percent and
to report earnings before interest and tax in the range of 12.75
to 13.25 percent of sales.
Ann Duignan, an analyst at JP Morgan, said the forecast
implied 2014 EPS of about $8.50 - well below consensus
Analysts, on average, expected Cummins to post a full-year
2014 profit of $9.23 a share, according to Thomson Reuters
In early trading on the New York Stock Exchange, Cummins
shares fell 1.8 percent at $124.38.