COLUMBUS, Ind. — Engine maker Cummins Inc. Tuesday reported sharply higher first-quarter profits on improved sales in fast-recovering markets like China and the effect of restructuring charges in the year-ago quarter.
The company also raised its 2010 sales forecast.
Cummins shares rose $4.71, or 6.7 percent, to $75.02 in morning trading.
The company said it earned $149 million, or 75 cents per share, up from $7 million, or 4 cents per share, in the first quarter of 2009, when it posted restructuring charges of $66 million. Sales rose to $2.48 billion, up 2 percent from $2.44 billion.
Analysts surveyed by Thomson Reuters expected quarterly earnings of 35 cents per share on revenue of $2.42 billion, on average.
Cummins said that three of its four business divisions showed improved profits in the quarter. The biggest improvement was in the engine and components unit.
The company reported that it saw significant strength in developing markets like China, India and Brazil, which Cummins said are rebounding from the recession more quickly than other regions.
For all of 2010, Cummins now expects sales of $12 billion, up from prior guidance of $11 billion. Analysts expect $11.32 billion of sales.
Kevin Jones of The Trucker staff can be reached for comment at firstname.lastname@example.org.
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