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Cummins Inc. (NYSE:CMI), on Tuesday, slashed its sales forecast for the full year. CMI stock fell sharply on Tuesday, dragging the Industrials sector down, following the downward revision. The stock has extended its losses in trading today, falling another 2%.
Cummins was not the only company to lower its sales forecast on Tuesday. Chipmakers Applied Materials Inc. (NASDAQ:AMAT) and Advanced Micro Devices (NYSE:AMD) also lowered their sales outlook, a sign that the global economic uncertainty is having a negative impact on companies.
CMI said on Tuesday that its second-quarter sales are expected to come in at $4.45 billion. The diesel engine manufacturer also cautioned that its sales for the full year are likely to be in-line with 2011 instead of growing by 10%, as previously expected. CMI’s sales forecast for the second quarter is well below consensus forecast of $5.1 billion. Analysts forecast full-year sales of just under $20 billion.
CEO Tom Linebarger cited softness in order trends in U.S. for trucks and power generation equipment as the reason for the weak sales outlook. Linebarger also noted that demand in Brazil, China and India has is not improving as previously expected.
Cummins will report its second-quarter results on July 31.
