(Updates shares in second paragraphs.)
Oct. 25 (Bloomberg) -- Cummins Inc. fell after the maker of diesel engines lowered its annual sales forecast because of slower demand in China and India and a stronger U.S. dollar.
The shares fell 5.1 percent to $93.81 at the close in New York and have dropped 15 percent this year.
Sales this year will be $17.5 billion to $18 billion, down from a forecast of $18 billion, Columbus, Indiana-based Cummins said today in a statement. Cummins issued the $18 billion forecast on July 26 and repeated it Sept. 13. The average estimate of 13 analysts in a Bloomberg survey was $18.2 billion. Cummins gets 64 percent of its revenue outside the U.S.
“There is some uncertainty around the macro-economic environment,” Chief Operating Officer Tom Linebarger said in the statement. “Government actions to reduce inflation in India and China have resulted in softer near-term demand than we previously expected.”
Net income in the quarter ended Sept. 25 rose 60 percent to $452 million, or $2.35 a share, from $283 million, or $1.44, a year earlier, Cummins said today. Sales rose 36 percent to $4.63 billion as engine revenue increased 43 percent. Excluding items, profit was $2.20 a share. The average estimate of 15 analysts in a Bloomberg survey was $2.25.
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