Cummins Inc. fell the most in more than three years after third-quarter profit trailed analysts’ estimates and the company reduced its annual sales forecast because of weakening demand for its heavy-duty engines.
The company also said it’s cutting 2,000 jobs as part of a plan to save as much as $200 million a year. And Chief Financial Officer Pat Ward said on a conference call that Cummins will resume share buybacks this quarter. Its board authorized a $1 billion repurchase program in July 2014.
Cummins reported quarterly earnings of $2.14 a share on revenue of $4.62 billion, trailing the average estimates of $2.60 and $4.91 billion compiled by Bloomberg. Orders in China and Brazil are at multiyear lows with no sign of improvement soon, the Columbus, Indiana-based company said in a statement. Revenue in North America rose 4 percent, compared with an 18 percent decline in international markets.
This post was published at David Stockmans Contra Corner on October 28, 2015.
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