Cummins Engine reports first-quarter profit-before-tax higher than fourth quarter on lower sales.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)--April 16, 1997-- -0-
CUMMINS ENGINE COMPANY, INC.
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(Millions, Except Share Amounts)
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FOR THE FIRST QUARTER ENDED March 30, 1997 March 31, 1996
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Net sales $1,304 $1,316
Earnings before income taxes 56 71
Net earnings 41 49
Earnings per share $1.06 $1.21
Weighted-average number of shares for EPS 38.4 40.3
COLUMBUS, Ind. . . . Cummins Engine Co. Inc. (NYSE NYSE See: New York Stock Exchange :CUM) today reported first-quarter 1997 net earnings of $41 million, or $1.06 per share, on sales of $1.3 billion. Profit-before tax of $56 million was 12 percent higher than the $50 million reported in the fourth quarter of 1996. Sales were $1.36 billion in the fourth quarter of 1996. Shipments to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. heavy-duty truck market increased over fourth-quarter levels. Net earnings in the first quarter of 1996 were $49 million on sales of $1.32 billion. "Strong performance in our industrial, power generation, and bus and light commercial vehicle businesses, compared to the first quarter of last year, was the result of our product and market diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. programs. In addition, business conditions continue to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. in most of our markets worldwide at this time. These factors combined to give us the confidence to announce at our April 1 annual meeting a 10-percent increase in the quarterly common stock dividend, from 25 cents to 27.5 cents," said Cummins Chairman and Chief Executive Officer Jim Henderson
Henderson added that the company is particularly pleased with record quarterly sales to industrial markets of $257 million. These sales were 27 percent higher than the first quarter of 1996, reflecting strong sales for construction equipment 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. and agricultural equipment in certain international markets, he said. North American heavy-duty truck engine shipments were 13 percent higher than the fourth quarter of 1996. "We believe that this market has strengthened," Henderson said, "and resulted in the higher level of shipments." Sales of $295 million to the heavy-duty truck market worldwide were nearly 20 percent lower than the year-ago quarter, due primarily to the decline in the North American portion of this market. 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 $132 million were 18 percent lower than the first quarter of 1996 due to lower truck demand in North America. Sales were up 5 percent over fourth quarter 1996 levels. In the bus and light commercial vehicles market, sales of $171 million were 8 percent higher than the first quarter of 1996. Engine shipments to Chrysler for the popular 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 set another record during the first quarter. Power Generation sales of $275 million were 9 percent higher than the first quarter of 1996. Strong sales in Asia and Mexico accounted for this increase. Compared to the fourth quarter, sales in the first quarter were lower due to seasonal declines in Asian 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 $174 million, slightly lower than the first quarter of 1996, due primarily to lower demand in North American truck markets. Cummins, headquartered in Columbus, Ind., is a leading worldwide designer and manufacturer of diesel engines and related products. 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. Cummins' home page on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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: Cummins Engine Co. Inc. Ann C. Smith, 812/377-3524 |
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