"As we forecasted in January, the majority of our markets declined further from what were already extremely low levels, leading to a significant impact on our earnings," said Cummins chairman & CEO Tim Solso. "The first quarter is historically difficult for our industry, so we believe demand has hit a trough in most of our markets and should gradually improve going forward."
Columbus, IN-based Cummins said revenues for its truck-related business segments were mixed. Revenues for its filtration segment increased 6% to $228 million over the first quarter of 2001.Cummins noted that oil filtration business revenue increased in North America as some markets have begun a slow recovery. Sales for Cummins' truck engine division, however, were $776 million, essentially flat compared with sales of $768 million a year ago.
Revenues in automotive markets were up 3% year over year, due in part by increases in the light duty automotive and RV businesses. Demand in the heavy-duty and medium-duty truck markets remained low, though Cummins believes those markets have finally bottomed out and are showing some signs of a modest improvement.
"As we look forward to the remainder of 2002, we believe the worst is behind us, but we do not expect significant broad recovery in the near term," said Solso.
Cummins said it expects earnings per share of approximately 20 cents for the second quarter of 2002. For the year, the company said the previously announced estimate of 70 to 80 cents per share still holds, though it is now expected to be at the lower end of the range. Cummins predicted that its engine division will have modest sales growth in the 5 to 10% range for the year.
