Cummins Inc. said profit fell less than expected in the second quarter, helped by its cost-cutting program, but lowered its full-year revenue estimate as market conditions become even more dire.

Cummins said it now sees full-year revenue down 8% to 10% after it previously guided for a revenue drop between 5% and 9%.

Lower production in North America as well as weak global demand for off-highway and power generation equipment has dented sales in recent quarters, and Cummins said an even lower outlook in those areas led to its revenue forecast cut. The company has also been hurt by a stronger U.S. dollar that makes its products more expensive overseas. Currency effects shaved 1% off its top line in the quarter ended July 3.

Cummins also been pressured by weak commodity prices and soft economic growth in some developing overseas markets. The company has faced tough business conditions in markets such as Brazil.

Over all, Cummins reported a profit of $406 million, or $2.40 a share, down from $471 million, or $2.62 a share, a year earlier. Revenue declined 9.7% to $4.53 billion. Analysts expected $2.16 in per-share earnings and $4.5 billion in revenue.

Sales in Cummins' engine segment, its largest, skidded 14%, while sales in the distribution segment rose 3%. Sales in the components unit declined 8% and revenue from its smaller power systems division slipped 16%.

Research, development and engineering expenses fell 6.6% in the quarter while selling, general and administrative expenses fell 2.4%.

Shares slipped 0.3% to $121.40 in premarket trading.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

August 02, 2016 09:45 ET (13:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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