Cummins Says It Is Ready If 2007 Engine Sales Lag

Transport Topics, October, 2005 by Gilroy, Roger

Engine maker Cummins Inc. could weather a 30% to 40% drop in heavy-duty engine sales in 2007, top management said, describing a scenario that might occur if truck buyers shun more expensive diesel engines with next-generation emission controls.

The Environmental Protection Agency requires that 2007 engines slash emission, and many people in trucking nave predicted another sharp drop in Class 8 sales similar to what occurred after EPA mandated new emission controls in October 2002.

Tim Solso, Cummins chairman and chief executive officer said the company had "modeled" for such a downturn, but was more diversified and had "stabilized its earnings stream," changes he said would offset a potential sharp decline in engine sales, its most profitable business.

Cummins'...