Cummins Revved Up

Truck engine sales are weak, but other areas are scalding hot.
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Cummins

(CMI) - Get Report

surged 17% Friday after the engine maker beat first-quarter earnings targets by 56 cents and raised full-year guidance.

The Columbus, Ind., company made $143 million, or $1.42 a share, for the quarter ended April 1, up from the year-ago $135 million, or $1.35 a share. Sales rose to $2.82 billion from $2.68 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for an 86-cent profit on sales of $2.62 billion.

The heavy-duty truck market -- still the company's largest -- declined, as expected, because of lower truck sales resulting from new diesel emissions standards. However, results from Cummins' other operations led to higher sales and net income for the quarter.

Based on the first-quarter results and updated forecast for the rest of the year, Cummins increased its full-year profit guidance to $6-$6.50 a share from the previous $5.50-$5.75 a share.

Shares rocketed $15.01 to $101.