Cummins Power Generation Inc., a division of
), revealed that it will raise prices up to 3% for most of its
diesel- and gas-powered generator sets, automatic transfer
switches and other products globally in order to adjust with the
global market conditions and foreign exchange rates. The price
changes will take effect for shipments made after January 1,
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In May this year, the company's power generation division in
India, Power Generation Business of Cummins India Limited,
announced a price increase of up to 3% for its diesel generator
sets and generator set engines in the range of 7.5 kVA and 3000
kVA due to the same reason. The new pricing took effect from June
Cummins Power Generation provides innovative solutions for power
needs in commercial, industrial, recreational, emergency and
residential sectors. Its distributors are present in more than
190 countries around the world.
It supplies alternators, generator-drive engines and
pre-integrated power system. It also provides services including
system design, project management, operations and maintenance
contracts to development of turnkey power plants.
Cummins, a Zacks #3 Rank (Hold) Stock, reported a 19.1% fall in
adjusted earnings per share to $1.78 in the third quarter of 2012
from $2.20 in the year-ago quarter. Net income declined 20.6% to
$336.0 million from $423.0 million in the third quarter of 2011.
With this, profits in the quarter missed the Zacks Consensus
Estimate by 6 cents per share.
The decrease in earnings was due to uncertainty in most of the
markets served by the company. The company has actively responded
to this situation by canceling or delaying projects, reducing
production at some of its manufacturing plants, cutting
discretionary expenses. It also plans to reduce workforce by 1000
to 1500 people by the end of this year.
The company's revenues for the quarter dipped 11% to $4.1
billion, lower than the Zacks Consensus Estimate of $4.2 billion.
The decline in revenues was driven by a 21% decline in revenues
in the international market, which offset the 2% rise in revenues
in North America.
Cummins expects revenues of $17.0 billion for 2012, which is
lower than the previous guidance of $18.0 billion. It also
expects EBIT margin of 13.5%, down from the previous estimate of
14.25%-14.75% during the year.
Cummins is a leading worldwide designer, manufacturer and
distributor of diesel and natural gas engines, electric power
generation systems, and engine-related components, fuel systems,
controls and air handling systems. The company faces stiff
Navistar International Corporation