Cummins Engine Revises First-Quarter Earnings Estimates.COLUMBUS, Ind.--(BUSINESS WIRE)--March 20, 1998-- Second-Quarter Results Expected to Approach Second-Quarter 1997 Results Cummins Engine Co. Inc. (NYSE NYSE See: New York Stock Exchange :CUM) announced today that its first-quarter results will be significantly impacted primarily due to a one-time charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc product coverage costs on previously produced engines. Also affecting results are lower-than-anticipated sales in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. , Korea, China and India, and slower- than-expected results from intensive restructuring efforts in its Power Generation Group. The company does expect to report a profit for the quarter. Cummins Chairman and Chief Executive Officer Jim Henderson
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 pickups are particularly strong, and the Filtration Group's integration of the recently acquired Nelson Industries is proceeding on schedule." The company reported that the increase in product coverage expense is primarily attributable to the recent experience of higher-than-anticipated costs to repair certain automotive engines Automotive engine The component of the motor vehicle that converts the chemical energy in fuel into mechanical energy for power. The automotive engine also drives the generator and various accessories, such as the air-conditioning compressor and power-steering manufactured in previous years. The company said it believes it will need to make a one-time charge of approximately $30 million pre-tax in the first quarter to accrue for such product coverage costs as they are incurred in the future on these engines in the field. Cummins said that it has seen a slowdown in its Asian markets and that this decline is having a greater-than-anticipated impact on its sales of power generation and industrial equipment. In addition, Power Generation, the group most affected by the decline in Asian markets, is taking longer than expected to achieve the benefits of closing its Huntsville, Ala., plant, which was closed during the first quarter of 1998, and in delivering planned improvements in the performance of some of its joint ventures. The company said it will continue to reduce costs, particularly in its selling and administrative areas. 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. . The company provides for customers in its key markets: automotive, power generation, industrial and filtration. Cummins reported record sales of $5.6 billion in 1997. Press releases by fax may be requested by calling News on Demand (toll free) at 888-329-2305. Cummins' home page on the Internet can be found at http://www.cummins.com. Certain information included in this press release is forward-looking and involves risks and uncertainties, including general economic and competitive conditions that could significantly affect expected results. CONTACT: Ann C. Smith Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Director Cummins Engine Co. Inc. 812/377-3524 |
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