Cummins Rises After Outlook Exceeds Estimates: Detroit Mover

Cummins Inc. (CMI) rose after the maker of diesel engines reported a sales forecast that topped analysts’ estimates, boosted by growth in the construction, power generation and oil and gas markets.

Cummins gained 3 percent to $109 at 8:51 a.m. New York time before the start of regular trading. The shares are up 20 percent this year, before today, after sliding the same amount in 2011.

Sales this year will rise 10 percent, the company said in a statement. Based on 2011 revenue of slightly more than $18 billion, 2012 sales would total $19.9 billion. The average estimate of 13 analysts surveyed by Bloomberg was for $19.6 billion.

Fourth-quarter net income jumped to $548 million, or $2.86 a share, from $362 million, or $1.84 a share, a year earlier. Excluding some items, profit was $2.56 a share, compared with $2.24, the average estimate of 15 analysts.

Sales rose 19 percent to $4.92 billion, as the Columbus, Indiana-based company increased engine sales in North America. Analysts estimated sales of $4.74 billion in the quarter, the average of 11 estimates in a Bloomberg survey.

To contact the reporter on this story: Mark Clothier in Lombard, Illinois, at

To contact the editor responsible for this story: Jamie Butters at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.