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Engine maker Cummins raises full-year sales forecast

By: | at 09:05 AM | Intermodal  

Cummins Inc, which makes engines and other vehicle components, reported a 7 percent rise in quarterly revenue and raised its full-year revenue forecast, citing improving demand from makers of pickup trucks and motor homes in North America.

Cummins said it now expects sales to grow between 8 percent and 11 percent in the year ending Dec. 31, higher than its previous forecast of a rise of between 6 and 10 percent.

“Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets,” Chief Executive Tom Linebarger said in a statement.

Revenue from Cummins’ businesses that make engines for heavy-duty and medium-duty trucks and buses rose in the second quarter ended June 29, the company said.

The two businesses fall within the company’s engine-making operations, which contributes 75 percent of total revenue.

Cummins’ total revenue rose to $4.84 billion in the quarter from $4.53 billion a year earlier.

Net income attributable to the company rose 7.7 percent to $446 million, or $2.43 per share.

Analysts on average had expected earnings of $2.38 per share on revenue of $4.83 billion, according to Thomson Reuters I/B/E/S.

Cummins’ shares were fell slightly in premarket trading on Monday from their close of $150.15 on Friday.