CHICAGO Oct 29 Cummins Inc, the U.S.
maker of engines and other vehicle components, reported
lower-than-expected quarterly profit on Tuesday and cut its
full-year outlook, citing weak demand in most of its markets,
Cummins now expects full-year revenue to fall 3 percent
versus its previous forecast of revenue being flat in 2013.
Cummins also cut its forecast for profit before interest and
taxes in the range of 12.5 percent to 13 percent of total sales,
down from 13 percent to 14 percent of sales.
The Columbus, Indiana-based company, which supplies the
engines that run hauler trucks, loaders and excavators used in
mines all over the world, said lower capital equipment spending
by resource companies was the main reason that earnings missed
estimates in the latest quarter and for the lowered forecast.
Cummins was the latest U.S. company to blame the mining
sector's weakness for its financial woes, joining
heavy-equipment maker Caterpillar Inc and steelmaker
Miners, facing investor backlash over unpopular takeovers
and budget overruns and suffering from falling metal prices,
have slashed spending on new equipment and even postponed
replacement parts purchases by cannibalizing components from old
Cummins posted third-quarter net income of $355 million, or
$1.90 a share, up from $352 million, or $1.86 a share, last
Analysts, on average, expected a profit of $2.11, according
to Thomson Reuters I/B/E/S.
Sales in the quarter fell 1 percent to $2.5 billion.