A spokesman with Columbus-based Cummins Inc. (NYSE: CMI) tells Inside INdiana Business an announcement Thursday morning to scale back small engine production in North America will not affect the work force or V8 production at its Columbus Engine Plant. However, Jon Mills says the manufacturer does not anticipate adding new customers or broadening its production range at the Bartholomew County operation. Cummins released a quarterly earnings report that included a dip in quarterly and annual profit.
The company says, despite scaling back, it remains committed to existing customers in the light duty engine segment. Chief Operating Officer Rich Freeland added Cummins is "confident in the growth potential of our global light duty engine business, including the V8 engine in North America."
Cummins projects revenues will be down between five and nine percent this year. This dip is expected to be driven by factors including lower levels of U.S. heavy-duty truck production, reduced global demand for off-highway and power generation equipment and currency exchange pressures.
Cummins is reporting fourth quarter net income of $161 million, compared to $444 million during the same period in 2014 and full-year net income of $1.4 billion, down from $1.7 billion.
Last year, Cummins reduced its work force by 2,000 people globally, which accounts for some seven percent of the total headcount.
In a conference call with investors, Chief Executive Officer Tom Linebarger said markets were in line with previous expectations.