Cummins Inc. reported 1Q net income of $33 million— a reversal over its 1Q 2003 loss of $31 million. The company cites robust sales volumes, and productivity gains as factors in this turnaround.
Sales gained 28% over the same period last year, as all four of its operating segments were profitable, including its largest segment— engines.
Total 1Q sales soared 40% to $1.1 billion for engines “with significant improvement in the North American heavy-duty truck and global medium-duty truck markets,” according to the report.
Cummins expects market growth for North American heavy-trucks to exceed 30% by the end of the year. Based on the success of its new engine platforms, the manufacturer says it also expects to gain market share by several percentage points.
Demand for Cummins light-duty turbo diesel engine remains strong, especially as engine shipments for the Dodge Ram pickup truck increased 21%. Volume for this business is expected to grow 10% by the end of 2004.
Total sales for the automotive segment were up 34%.