Cummins, a diesel engine manufacturer, released its financial report on October 27, 2015. Its third-quarter earnings and revenue were far below market expectations, and the global economic weakness continued to weigh on its international business.
The company also announced that it plans to lay off at least 2,000 people worldwide, which is equivalent to about 3.7% of the total number of employees. Affected by this news, the company's stock price fell nearly 9% before the market.
The company's third-quarter earnings from the same period last year 429 million US dollars, or 2.32 US dollars per share, fell to 380 million US dollars, or 2.14 US dollars per share, lower than the average expected analysts received Thomson Reuters of 2.60 US dollars. Revenue fell by 5.5% to 4.62 billion U.S. dollars, which was lower than the average analyst estimate of 4.91 billion U.S. dollars.
Cummins also lowered its full-year revenue forecast, and currently expects revenue to drop by 2% to remain flat compared to the same period last year. The previous forecast is an increase of 2-4%.
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