) plans to lay off 150 workers based in its southern Indiana
factories, according to sources owing to the decline in sales in
North America, China and Brazil. The layoff is a part of the
company's plan to reduce headcount by 1,500 workers worldwide.
The job cut will mainly affect the workers based in the Fuel
Systems Plant in Columbus, Columbus Mid Range Engine Plant and
the Seymour Engine plant. Together, these three plants provide
employment to about 1,500 workers.
In the second quarter of 2012, Cummins registered 2% growth in
adjusted earnings per share to $2.45 from $2.41 in the year-ago
quarter despite a fall in the adjusted net income to $465 million
from $468 million in the corresponding quarter last year.
The results surpassed the Zacks Consensus Estimate by 18
cents. The year-over-year rise in earnings per share was
attributable to a fall in average shares outstanding to 190.1
million in the quarter from 194.4 million shares in the year-ago
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Total revenue went down 4% year over year to $4.45 billion in the
quarter, slightly lower than the Zacks Consensus Estimate of
$4.47 billion. The decline was due to weak international markets
in Brazil and China.
Cummins Inc. 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 is set to release
its third quarter 2012 results before the market opens on October
The company faces stiff competition from
Navistar International Corporation
). Currently, it retains a Zacks #5 Rank, which translates into a
short-term (1 to 3 months) Strong Sell rating.