Cummins Expects Lower 3rd-Quarter Revenue

Cummins Engine Co. said its revenue in the third quarter is likely to be 7% to 10% below that of the second quarter because of slumping sales in Asia and its agricultural markets worldwide. The world’s largest maker of diesel engines said its quarterly results will also be hurt by a seasonal but temporary slowdown in its North American automotive market and shutdowns and model changes by several big customers. Columbus, Ind.-based Cummins also said a pretax restructuring charge announced in the summer will be about $110 million in the third quarter. The company is completing restructuring plans, which will be announced with third-quarter results. But it said the charge currently includes a previously announced reduction in its worldwide work force by 1,000 and the streamlining of wholly owned and joint-venture operations overseas. Shares of Cummins fell $7.50 to close at $35.25 on the NYSE.