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Cummins to Cut 1,500 Jobs
Cummins Inc. has lowered its 2012 outlook for the second time and unveiled a restructuring that includes shedding as many as 1,500 employees by year-end, reducing work hours and closing several unidentified plants.
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Cummins Inc. has lowered its 2012 outlook for the second time and unveiled a restructuring that includes shedding as many as 1,500 employees by year-end, reducing work hours and closing several unidentified plants.
The Columbus, Ind.-based engine maker says global economic uncertainty has prompted its customers to delay capital spending. Cummins plans to disclose further details when it reports third-quarter results on Oct. 30.
The company cut its full-year revenue forecast by $1 billion to $17 billion, down 6% from 2011. The company originally predicted a 10% revenue gain in 2012. But its revised estimate in July was that sales would match last year's $18 billion.
Cummins expects earnings before interest and taxes to be 13.5% of sales compared with its original guidance that EBIT margin could be as high as 15%. That margin was. 14.2% last year.
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