Cummins has posted a 96% plunge in Q1 earnings on restructuring charges and the impact of the recession on markets for its diesel engines.
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The company reported a net profit of US$7m down from US$190m a year ago.
The latest results include a US$66m restructuring charge for job cuts.
Sales for the quarter were US$2.44bn, 30% down on last year.
“The first quarter was, as we expected, extremely challenging and we do not see the economy or our markets improving for the remainder of 2009,” said Cummins Chairman and Chief Executive Officer Tim Solso.
“We have taken significant actions to lower our costs and improve our productivity in response to the global recession, which has affected virtually every market in which we operate around the world.
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By GlobalData“We are confident that those actions, which will continue as necessary, will allow us to earn a reasonable profit in 2009, generate positive cash flow and enable us to continue to invest in the products and technologies vital to our future success.”
