UPDATE 2-Cummins misses Q3 view, cuts outlook on mining weakness
CHICAGO, Oct 29 (Reuters) - Cummins Inc, the U.S. maker of engines and other vehicle components, reported lower-than-expected quarterly profit on Tuesday and cut its full-year outlook, citing weak demand in most of its markets, including mining.
Cummins now expects full-year revenue to fall 3 percent versus its previous forecast of revenue being flat in 2013.
Cummins also cut its forecast for profit before interest and taxes in the range of 12.5 percent to 13 percent of total sales, down from 13 percent to 14 percent of sales.
The Columbus, Indiana-based company, which supplies the engines that run hauler trucks, loaders and excavators used in mines all over the world, said lower capital equipment spending by resource companies was the main reason that earnings missed estimates in the latest quarter and for the lowered forecast.
Cummins was the latest U.S. company to blame the mining sector's weakness for its financial woes, joining heavy-equipment maker Caterpillar Inc and steelmaker Timken Co.
Miners, facing investor backlash over unpopular takeovers and budget overruns and suffering from falling metal prices, have slashed spending on new equipment and even postponed replacement parts purchases by cannibalizing components from old mining equipment.
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.
Analysts, on average, expected a profit of $2.11, according to Thomson Reuters I/B/E/S.
Sales in the quarter fell 1 percent to $2.5 billion.