Cummins Rises After Outlook Exceeds Estimates: Detroit Mover
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.
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