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Aug 1 (Reuters) - Cummins Inc reported a lower-than-expected quarterly profit on higher warranty costs and the U.S. engine maker kept its forecast for 2017 earnings before interest and tax unchanged, despite raising the revenue outlook.
Shares of Cummins, which counts PACCAR Inc, Daimler AG and Navistar International Corp among its customers, were down 7.7 percent at $155 in premarket trading on Tuesday.
Cummins said it expected 2017 earnings before interest and tax to be in the range of 11.75 percent to 12.5 percent of sales.
However, the Columbus, Indiana-based company said it expected 2017 revenue to rise in the range of 9 percent to 11 percent, compared with an increase of 4 percent to 7 percent, previously.
Analysts on average were expecting 2017 revenue to rise 5.5 percent, and earnings before interest and tax of 11.9 percent of sales, according to Thomson Reuters I/B/E/S.
An increase in earnings was partially offset by "higher warranty costs that resulted in second quarter EBIT that was below our expectations," Chairman and Chief Executive Tom Linebarger said in a statement.
Net income attributable to Cummins rose to $424 million, or $2.53 per share, in the second quarter ended July 2, from $406 million, or $2.40 per share, a year earlier.
Net sales rose 12.1 percent to $5.08 billion.
Analysts on average expected second-quarter earnings of $2.58 per share on revenue of $4.80 billion. (Reporting by Ankit Ajmera in Bengaluru; Editing by Arun Koyyur)