COLUMBUS, Ind. (AP) — Cummins first-quarter net income declined 38 percent as demand softened in North America and overseas. The performance missed Wall Street's expectations.
Shares fell more than 4 percent in Tuesday premarket trading.
For the three months ended March 31, the Columbus, Ind., company earned $282 million, or $1.49 per share, down from $455 million, or $2.38 per share, in the prior-year period.
Analysts polled by FactSet forecast earnings of $1.85 per share.
Revenue declined 12 percent to $3.92 billion from $4.47 billion, with North American revenue down 15 percent and international revenue off 10 percent.
Wall Street expected $3.98 billion in revenue.
Cummins said the biggest drop in demand was seen in its engine business, with total unit volumes falling 18 percent. Shipments of high horsepower engines fell 24 percent due to weakness in mining, oil and gas and power generation markets.
Cummins Inc. still expects full-year revenue to be flat to down 5 percent. Based on 2012's revenue of $17.33 billion, this implies $16.46 billion to $17.33 billion.
Analysts predict revenue of $17.21 billion.
Cummins' stock dropped $4.75, or 4.2 percent, to $108.50 at about 20 minutes ahead of the market opening.