Here’s What Mining Supply Companies Blame for the Bad Quarter
Cummins Inc. (NYSE:CMI) is all frowns lately after a rough third quarter earnings report that had analyst Robert W. Baird downgrading it from an outperform rating to a neutral rating — according to Zolmax. The service engines and technologies company released the results Wednesday, admitting to some difficulty — and it wasn’t the only one in its field to face problems.
“Revenues were below our expectations as we continue to face an environment of weak demand for capital goods in most of our major markets. Our focus on lowering costs in all parts of our business positions us well to deliver strong earnings growth as market conditions improve,” said Chairman and CEO, Tom Linebarger.
According to Reuters, Cummins is looking at a 3 percent decrease in full-year revenue, below its earlier estimates that revenue would be flat in 2013. Its profit before interest and taxes estimate has also fallen, taking it down from a high of 14 percent to a high of 13 percent. Sales fell 1 percent to $2.5 billion, and the third quarter net income was at $1.90 a share, up from last year’s $1.86 a share last year, but down from analysts expectations at $2.11 a share.