Cummins 3Q revenue off 11%, net income down 22%

Cummins had warned investors that third-quarter sales this year would be weaker than a year ago, and its official earnings release this morning confirmed that with a 14 percent drop in revenue in its engine division and 11 percent less revenue overall.

Net income fell $100 million, or 22 percent, from the same period last year.

The weaker sales for the Columbus-based engine maker were largely tied to a swoon in international markets, the company said.

Third-quarter revenue of $4.1 billion decreased 11 percent from the same quarter in 2011, the company said. While revenues in North America grew 2 percent, sales in international markets declined 21 percent.

Net income for the third quarter of 2012 was $352 million or $1.86 per share, down from $452 million or $2.35 per share in the third quarter of 2011.

“Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets,” said Tom Linebarger, Cummins chairman and chief executive officer. “We have been responding to the conditions by delaying or cancelling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses, and reducing our workforce by 1,000 to 1,500 people by the end of this year.

"We are continuing to fund projects that are important for future growth and meeting commitments to customers. We are working to respond to the conditions now to ensure the long-term strength of the company and to best serve the many stakeholders who rely on Cummins long-term success.”

This story will be updated.