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Cummins reports record quarterly profits and sales

Last updated: 20:25 01 Feb 2011 GMT, First published: 21:25 01 Feb 2011 GMT

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Engine manufacturer Cummins (NYSE: CMI) said Tuesday that fourth quarter profits grew 34% on strength in the company's key international markets including China, India and Brazil.

For the fourth quarter, net income attributable to the company was a record-breaking $362 million, or $1.84 per share, compared to $270 million, or $1.36 per share, in the prior year period.

Sales during the quarter rose 22% to $4.14 billion. The company said fourth quarter 2009 results included $4 million of restructuring-related pre-tax costs.

Revenues from the company's engine segment, its largest by revenue, grew 15% to $2.5 billion during the fourth quarter period. Medium-duty truck engine sales increased 11% on strength of the Brazilian truck market, while North American medium-duty truck engine sales declined 42% due to weakness in the US economy and new, stricter emission standards.

The power generation division, the third largest by revenue, saw revenues increase 50% during the fourth quarter as commercial products sales grew 59% year-over-year.

For the full year 2010, Cummins reported net income of $1.04 billion, or $5.28 per share, on revenues of $13.23 billion.
Sales in China and Brazil increased by more than 70% in 2010, while sales in India rose 37% for the year. Cummins' total international sales went up by 48% from 2009 and accounted for 64% of total sales.

"The fact that we were able to achieve record profitability in the face of a sharp decline in large North American on-highway markets speaks to the global strength of our business and the work we did to keep the company strong during the recession," said chairman and CEO Tim Solso.

Cummins said it expects sales to grow to $16 billion in 2011 as it anticipates the recovery of the North American truck markets.

Columbus, Indiana-based Cummins, through a network of more than 600 distributor locations and 6,000 dealer locations worldwide, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

The company's stock price appreciated by nearly 140% last year.

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