Cummins Inc. Lowers 2012 Forecast

The US engine maker Cummins Inc. recently lowered its 2012 forecast. This is the second time this year that they’ve made a move of this sort. They have also said that they plan to cut as many as 1500 jobs. They expect full-year sales of $17 billion, which is $1 billion less than their previous prediction.

As William Blair & Company analyst Lawrence De Maria said, “Investors expected a guidance cut from Cummins this quarter but this does look to be a bit more than expected.”

As Chief Executive Tom Linebarger explained, “Demand in China has weakened in most end markets and we have also lowered our forecast for global mining revenues.” Linebarger explained that they do plan to take actions to offset the fall in the demand. They will have work-week reductions, shutdowns at some of the manufacturing plants and targeted workforce reductions. They plan to cut between 1000 and 1500 jobs by the year’s end.