Cummins Inc. reported net earnings of $47 million for the quarter, compared with earnings of $3 million. The results were clouded by a one-time $57 million gain reflecting an income tax adjustment.
Columbus, IN-based Cummins also reported a past accounting error that caused it to understate its accounts payable, which are current liabilities or debts, by $30 million to $40 million.
Excluding that gain, Cummins posted a $13 million loss. Its sales declined 3% from $1.41 billion in the fourth quarter, compared with $1.46 billion a year ago.
"We have delivered solid and improving results, and because of our ongoing cost reduction efforts, we are positioned for the upturn in our markets when it happens," said chairman & CEO Tim Solso.
For all of 2002, Cummins' earnings accounting for one-time gains and expenses were $73 million, compared with a loss of $102 million a year earlier. Sales in 2002 were $5.85 billion, up from $5.68 billion a year earlier.