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Cummins Corp. recently released its third quarter 2008 financial communique, with new sales and profits. The favorable situation in the third quarter was mainly attributed to the strong growth in international business that effectively offset the negative impact of the continuous decline in the North American market and the weakness in the European market.
Cummins’ sales in the third quarter was US$3.69 billion, an increase of 10% over the same period of last year, and net income rose by 24% to US$229 million. Overseas operations outside the United States accounted for 61% of Cummins’ global sales in the quarter, an increase of 9 percentage points from 52% in the same period last year.
Cummins's major global highlights in the third quarter include Cummins’ continued increase in North American heavy truck and passenger car market share. From January to August, the Cummins North American heavy-duty diesel engine market accounted for 45.2% of the market; the international demand for China Card's engines was strong, especially in Latin America; Cummins’ electric power business grew rapidly in China, the Middle East, and Latin America compared with the same period of last year. Post-discharge processor sales have increased significantly, especially in North America.
Tim Solso, Cummins Chairman and Chief Executive Officer, said that the overall pressure in the fourth quarter will be relatively large, especially the business pressure from the United States and Europe, but Cummins has been fully prepared to face the challenges and challenges of the economic crisis. He said that Cummins currently has a total asset-liability ratio of less than 15%, a good cash position, and a $1.1 billion credit line that can provide additional liquidity support.
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