Already a Bloomberg.com user?
Sign in with the same account.
NEW YORK (AP) — Shares of Cummins Inc. tumbled ahead of Wednesday's market opening after the engine maker cut its revenue guidance for the year and announced plans to eliminate up to 1,500 jobs.
The Columbus, Ind. company said late Tuesday that it now expects its 2012 revenue to total about $17 billion, down from its previous prediction of $18 billion. Analysts polled by FactSet expect $17.71 billion.
Cummins said its customers remain uncertain about the future of the global economy and as a result have delayed spending, lowering demand for its products.
Cummins said that some of the most significant changes in demand have come in the North American heavy duty truck and international power generation truck markets. Demand from Chinese markets also has fallen and the company also cut its expectations for global mining revenue.
As a result of the lower sales, Cummins said it's taking steps to cut costs, including shutting down facilities and cutting jobs. The company said it now expects to eliminate between 1,000 and 1,500 positions by the end of the year.
Cummins shares fell $3.68, or 4.1 percent, to $87.16 in premarket trading. Its shares have risen from a 52-week low of $82.20 in mid-July, but are still down 30 percent from their high of $129.51 in mid-March.