Cummins Engine Reports 20 Percent Profit Improvement for the Second Quarter.COLUMBUS, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--July 16, 1997-- Sales 6 Percent Higher Than the Year-Ago Quarter -0-
CUMMINS ENGINE COMPANY, INC.
(Millions, Except Share Amounts)
FOR THE SECOND QUARTER ENDED June 29, June 30,
1997 1996
Net sales $1,396 $1,316
Earnings before income taxes 74 62
Net earnings 53 44
Earnings per share $1.39 $1.10
Weighted-average number of shares for 38.4 40.1
EPS
FOR THE FIRST HALF ENDED June 29, June 30,
1997 1996
Net sales $2,700 $2,632
Earnings before income taxes 130 133
Net earnings 94 93
Earnings per share $2.45 $2.31
Weighted-average number of shares for 38.4 40.2
EPS
Cummins Engine Co. Inc. (NYSE NYSE See: New York Stock Exchange :CUM) today reported second-quarter 1997 net earnings of $53 million, or $1.39 per share, on record sales of $1.4 billion. This is a 20-percent improvement over second- quarter 1996 net earnings of $44 million, or $1.10 per share, on sales of $1.3 billion, and is a 26-percent improvement in earnings per share. The company earlier had indicated it expected second-quarter earnings to be higher than the $41 million reported in the first quarter. For the first half of 1997, Cummins reported net earnings of $94 million, or $2.45 per share, on sales of $2.7 billion. For the same period of 1996, the company's net earnings were $93 million, or $2.31 per share, on sales of $2.6 billion. "We are quite pleased with our improved profitability in the second-quarter," said Cummins Chairman and Chief Executive Officer Jim Henderson
Sales of $331 million to the heavy-duty truck market were 7 percent higher than the second quarter of 1996, due primarily to increased shipments in international markets. "To better serve this market, we announced yesterday a completely new engine with the first electronic dual overhead cam in automotive history, featuring 600 hp. with improved torque," said Tim Solso, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "We believe this product will set new standards of performance for users of high-horsepower truck engines. Over time, we believe it will help Cummins capture a larger share of the heavy-duty truck market worldwide and improve profitability." Shipments will begin in March of 1998 from Cummins' Columbus, Ind., plant which is now undergoing a $225 million upfit. Midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually truck engine sales of $143 million were 7 percent lower than the year-ago quarter as a result of lower demand in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Sales of $152 million to the bus and light commercial vehicle market were essentially level with second-quarter 1996 levels, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite lower engine sales to Chrysler resulting from a strike affecting Dodge Ram
The Ram is a full-size pickup truck from Chrysler LLC's Dodge brand. The name was first used in 1981 on the redesigned Ram and Power Ram, though it came from the hood ornament used on pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their truck plants. Power generation sales of $302 million were slightly lower than the year-ago quarter. Record industrial sales of $263 million were 26 percent higher than the second quarter of 1996. These results reflected strong sales of construction equipment in North America and agricultural equipment in international markets. Sales of filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids and other products were $205 million, 11 percent higher than the second quarter of 1996, due to stronger sales of filtration products and an improvement in the European market for turbochargers. Cummins, headquartered in Columbus, Ind., is the world's largest producer of diesel engines above 200 horsepower horsepower, unit of power in the English system of units. It is equal to 33,000 foot-pounds per minute or 550 foot-pounds per second or approximately 746 watts. . These engines provide power for customers in its key markets: automotive, power generation, industrial and filtration. The company reported record sales of $5.3 billion in 1996. The company's press releases by fax may be requested by calling News on Demand at 888-329-2305. Cummins' home page on the Internet can be found at http://www.cummins.com . CONTACT: Cummins Engine Co. Inc. Ann C. Smith, 812/377-3524 |
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