WASHINGTON (dpa-AFX) - Diesel engine maker Cummins Inc. (CMI) Tuesday lowered its full-year 2012 revenue outlook, reflecting the weak global economy. Following the news, shares of Cummins fell over five percent in after hours trade.
The Columbus, Indiana-based company now expects full-year revenue of about $17 billion, compared to previous estimate of $18 billion. Analysts polled by Thomson Reuters currently estimate revenues of $18.13 billion.
The company also lowered its earnings before interest and taxes, or EBIT, estimate to about 13.5 percent from prior guidance of 14.25 to 14.75 percent.
Cummins said that based on preliminary results it expects third-quarter revenues of about $4.1 billion and EBIT of around 12 percent. Analysts currently estimate revenues of $4.42 billion.
Chief Executive Tom Linebarger said, 'We continued to see weak economic data in a number of regions during the third quarter increasing the level of uncertainty regarding the direction of the global economy. As a result of the heightened uncertainty, end customers are delaying capital expenditures in a number of markets, lowering demand for our products.'
The company also said it is taking actions necessary to respond strategically to the current environment by cutting costs while maintaining investments in key growth programs. The company plans to shutdowns some manufacturing facilities and expects to reduce its workforce by between 1000 and 1500 people by the end of the year.
Copyright RTT News/dpa-AFX