Originally published at www.seclive.com
Cummins Incorporated (NYSE:CMI) reported quarterly earnings that fell 12% as the result of decreased margins, despite a slight increase in sales. Cummins has been concerned about the demand for its engines, and attributes the decreased demand to a hesitant trucking industry that is concerned about the U.S. economy and freight volume. As mentioned, the company's gross margin decreased from 27.2% to 25.5% while sales increased 1.6% to $4.53B. North American sales, the company's most successful business region, increased 7% while international sales declined 4%. Cummins earnings and earnings per share decreased from $469M and $2.47 this quarter last year respectively, to $414M and $2.20 earnings per share.
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