Diesel and natural gas engine manufacturer Cummins cut its full year guidance today, saying it expected to ultimately generate revenue in line with 2011 results, nearly $2 billion below earlier guidance.Previously in the year Cummins forecast it would grow top line results by as much as 10 per cent above the year earlier figures. In 2011, Cummins reported total sales of $18.05 billion.
“We have seen demand in some markets weaken recently as growth in the global economy has slowed,” Cummins CEO Tom Linebarger said. “Order trends in the U.S. for trucks and power generation equipment have softened and demand in Brazil, China and India is not improving as we had previously expected.”
At the same time Cummins’ board of directors has authorised an increase in its dividend, to $0.50 per share from $0.40.
Shares are more than eight per cent lower during afternoon trade.