Cummins revenue drops 11 percent

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Cummins’ $4.1 billion revenue in in the third quarter of 2012 represents an 11 percent year-over-year decrease for the global engine maker. The company experienced growth in North American markets, but saw a 21 percent drop in revenue in international markets, dropping its earnings before interest and taxes (EBIT) to $496 million, 12 percent of its sales, down from $640 million in 2011, which was 13.8 percent of quarterly sales. 

In the third quarter of 2012, engine sales accounted for $2.5 billion of the $4.1 billion, component sales for $938 million, power generation sales for $814 million and distribution for $801 million.  

The company announced in early October that it was shutting down facilities and laying off between 1,000 and 1,500 people by the end of the year in an attempt to respond to weak numbers. Cummins says it projects is full-year revenue to be $17 billion, with an EBIT of 13.5 percent.