Cummins 1st-qtr net profit rises 33 pct

CHICAGO (Reuters) - Cummins Inc (CMI.N: Quote, Profile, Research), a U.S. maker of engines and power generators, reported a 33 percent jump in quarterly earnings on Wednesday as stronger international demand helped offset rising commodity prices.

The better-than-expected results, which were driven by strong sales of medium-duty truck and bus engines, sent the company's shares surging more than 11 percent in early trading on the New York Stock Exchange.

Cummins also reported big gains in market share in North America for both its heavy- and medium-duty on-highway diesel engines -- gains that most likely come at the expense of rival Caterpillar Inc (CAT.N: Quote, Profile, Research), which has acknowledged in recent months that it faces "an important decision on the future" of its on-highway engine business.

Cummins reported a first-quarter net profit of $190 million, or 97 cents per share, compared with $143 million, or 71 cents per share, in the same period in 2007.

Analysts on average had expected Cummins to report a profit of 89 cents a share, according to Reuters Estimates. Peter Nesvold, an analyst at Bear Stearns, said the results were also lifted by impressive margin improvements and called the better-than-expected numbers "a clean beat."

Sales at the Columbus, Indiana-based company rose 23 percent to $3.47 billion, ahead of estimates of $3.33 billion. International markets accounted for 57 percent of total revenue.

Cummins acknowledged that it was feeling the effects of the U.S. economic slowdown, noting that sales of engines for pick-up trucks and power generation equipment for recreational vehicles in North America all declined during the quarter.

But that weakness was more than offset by sales of engines to commercial marine customers and power generation equipment sales in Europe, India and the Middle East.

Cummins also affirmed its previous forecast of at least 12 percent sales growth this year.