Brought to you by WBIW News and Network Indiana
Last updated on Wednesday, October 28, 2015
(COLUMBUS) - Cummins Inc. Tuesday announced that it expects to reduce its professional workforce by up to 2,000 people, with the majority completed by the end of this year, to respond to a slowdown in global markets.
Cummins also lowered its outlook for 2015, saying it expects full year 2015 revenues to be flat to down 2 percent, compared to the Company's prior guidance of growth between 2 and 4 percent.
The Seymour Tribune reports, Cummin's third quarter revenue of $4.6 billion decreased 6 percent from the same quarter in 2014. Currency negatively impacted sales by 4 percent compared to last year, primarily due to a stronger U.S. dollar. Weaker demand in global off highway and power generation markets was partially offset by distributor acquisitions in North America.
"We are taking difficult but necessary actions to lower costs in the face of weak demand in many of our markets." said Tom Linebarger, chairman and chief executive officer, Cummins Inc. "Global off highway and power generation markets have been weak for some time and are worsening. Industry orders in key end markets in Brazil and China are at multi-year lows and showing no signs of improvement in the near-term. Given the uncertainty in the global economy, we expect challenging conditions to persist for some time. We have a very experienced leadership team at Cummins that knows how to manage effectively through periods of weak demand and ensure that the Company emerges stronger, with higher profitability and stronger leadership positions in our largest markets, as it has in prior cycles."
1340 AM WBIW welcomes comments and suggestions by calling 812.277.1340 during normal business hours or by email at comments@wbiw.com
© Ad-Venture Media, Inc. All Rights Reserved.