Australia, Industry News

Price rises at Cummins

Cummins said it would increase the price of its generator sets and transfer switches in North America by between 2% and 7%. Cummins generator sets are used for continuous, prime and standby power in a variety of commercial and industrial applications. These sets are also used for electrical power in non-road applications, such as temporary rental solutions. The manufacturer said the increase was due primarily to rising commodity and fuel prices as well as the consequence of the current industry dynamics.Nonetheless, Cummins last month reported its second best quarterly result ever, with net income up 24.5% in the third calendar quarter of 2008 as a result of strong international sales more than offsetting continued weakness in North American markets.But the manufacturer did downgrade its revenue guidance for calendar 2008, with revenue now expected to grow by 12% instead of 15%, as previously stated. The company’s net income was $US229 million ($A340 million) in Q3, up from $184 million in the corresponding 2007 period. The net income result was recorded on the back of $3.69 billion in sales in Q3, up from $3.39 billion in Q3 2007. Non-US sales accounted for 61% of the company’s revenues in Q3, compared to 52% a year ago.