UPDATE 1-Cummins cuts sales, profit outlook on weak power sales

Tuesday, 29 Oct 2013 | 8:21 AM ET

CHICAGO, Oct 29 (Reuters) - Cummins Inc, the U.S. maker of diesel engines and other vehicle components as well as power generators, cut its full-year sales and profit outlook on Tuesday, blaming weak demand for its products in most of its markets.

The move came as the Columbus, Indiana-based company reported a slightly higher quarterly profit, lifted by a combination of cost cuts as well as the continued rebound of the U.S. auto industry.

Cummins posted third-quarter net income of $355 million, or $ 1.90 a share, up from $352 million, or $1.86 a share, last year.

Sales in the quarter fell 1 percent to $2.5 billion.

Cummins said it now expects full-year revenue to fall 3 percent. The company had earlier said it expected revenue to be flat in 2013.

Cummins also cut its profit forecast, saying it now expects to post a profit before interest and taxes (EBIT) in the range of 12.5 percent to 13 percent of total sales, down from a previous forecast of EBIT of 13 percent to 14 percent of sales.

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