Cummins increases dividend; lowered FY12 revenue outlook and issues Q2 revs guidance below consensus (93.00 -2.74)
Co lowered its full-year revenue outlook for 2012 and now expects 2012 revenues to be in line with 2011 compared to previous guidance of an increase of 10 percent (consensus is for FY12 revs +10.0%). Based on preliminary results, and subject to normal quarterly financial statement closing procedures, second quarter revenues are expected to be ~$4.45 billion (vs $5.08 bln consensus). The Company does not provide quarterly revenue or earnings guidance… Co approved an increase quarterly cash dividend on common stock of 25 percent to 50 cents per share from 40 cents per share. “Order trends in the U.S. for trucks and power generation equipment have softened and demand in Brazil, China and India is not improving as we had previously expected. Our revenues have also been negatively impacted by the appreciation of the U.S. dollar against a number of currencies. We are making adjustments within our business to manage costs, while continuing to fund our critical growth programs and will continue to focus on execution and improving operating margins.”