Cummins Inc. today increased its original guidance for the first quarter 2004 to the range of 65 to 75 cents a share over its previous estimate of 40 to 50 cents a share.
The diesel engine manufacturer cited strong engine volumes and a broad recovery of many of its key markets as the driving factor.
Earnings in the second quarter are expected to be between $1.00 to $1.10 a share. For the full year of 2004, Cummins is increasing its earnings guidance to $4.00 to $4.20 a share, over its previous estimate of $3.20 to $3.40 a share. Revenues are expected to increase 15% this year over 2003.
Cummins has noted strength in the North American heavy-duty truck market, as well as Asian markets in China and India. The brisk sales have offset the impact of rising commodity prices for now, although that effect in the future remains uncertain, the manufacturer said, noting steel prices as a concern.