Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Prudential Keeps 'Buy' on Cummins

Prudential keeps its buy rating on Cummins (CUM).

On Wednesday the company announced consolidation and job cuts. Analyst Andrew Casey says the consolidation of its heavy truck engine assembly and test operations from Indiana to New York is "significant." He estimates that consolidation will remove approximately $5 million pretax per quarter from the Engines business cost structure, beginning in the second quarter of 2003. This equates to a 2003 earnings per share improvement of $0.25-$0.30.

Casey says net reduction in Cummins' heavy duty workforce of 200 will disproportionately impact Indiana, meaning nothing will be spared in the company's drive to improve profitability. He notes that no charge is expected, and minimal cash will likely be consumed with the relocation. Casey sees $0.76 2002 earnings per share, and $2.60 for 2003.

blog comments powered by Disqus