Diesel engine maker Cummins Inc. of Columbus, IN, reported a small profit for the fourth quarter of 2001, but ended up taking a loss for the year.
Cummins said it made a profit after taxes of $3 million on revenues of $1.46 billion for the fourth quarter of 2001. That's a major improvement from the fourth quarter of 2000, when the company lost $17 million on sales of $1.61 billion, exclusive of a pre-tax charge of $160 million associated with restructuring actions. Including the charge, Cummins reported a loss of $120 million or $3.16 per share in the fourth quarter of 2000.
However, for all of 2001, Cummins reported a loss for the year of $18 million, excluding a pre-tax charge of $125 million for costs associated with restructuring in the second quarter. Including the charge, Cummins lost $102 million for the full year 2001. Despite the loss, Cummins reiterated that it reported profits in each of the last three-quarters of 2001 on substantially lower sales.
"Last year was challenging for us, yet we were able to make significant progress in improving our operations and meeting our financial commitments in the face of the most severe market conditions that I can remember," said Tim Solso, Cummins chairman & CEO.
Solso added that Cummins does not expect a significant improvement in revenue in 2002. However, he did say Cummins expects to achieve a profitability improvement over 2001 through continuing cost-reduction efforts.
With the further deterioration in the power generation and diesel engine markets, Solso said Cummins now expects first-quarter 2002 results to record a loss of around $31 million dollars.