Cummins to Cut as Many as 1,500 Jobs, Lowers Forecasts

http://www.bloomberg.com/news/2012-10-09/cummins-to-cut-as-many-as-1-500-jobs-lowers-forecasts.html

Cummins Inc., a maker of engines, said it expects to cut as many as 1,500 jobs by the end of 2012 and lowered its forecasts for revenue and profit.

Cummins cut its forecast for full-year revenue to about $17 billion from $18 billion and its forecast for earnings before interest and taxes to about 13.5 percent from a range of 14.25 percent to 14.75 percent. The Ebit guidance doesn’t include the cost or benefits of the job cuts.

Cummins, based in Columbus, Indiana, produces engines for trucks and power-generation equipment. Its shares had gained 20 percent this year as of today’s close. The shares slid 6.3 percent at 5:27 p.m. New York time after the end of regular trading.

The company had second-quarter earnings of $2.45 a share, excluding gains from divestitures. That exceeded the average of 18 estimates compiled by Bloomberg of $2.27.