Cummins shows healthy profit

| Wednesday, April 30, 2008

In spite of the country being near – or in – a recession, diesel engine-maker Cummins Inc. reported that first-quarter profits this year shot up 33 percent compared with the first three months of 2007.

Bloomberg News reported that Cummins made the profits on the strength of heavy and medium-duty truck engine sales in North American, rather than abroad.

Cummins’ big gains in market share in North America for both its heavy and medium-duty truck engines most likely come at the expense of rival Caterpillar Inc. Reuters saidthat Caterpillar has acknowledged in recent months that it faces “an important decision on the future” of its on-highway engine business.

Cummins says it now controls 43 percent of the North American market for class-8 engines compared with 28 percent at this time last year.

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