From today's AutoBeat Daily...
CUMMINS BOOSTS OUTLOOK. Cummins Inc. says its first-quarter and full-year earnings will be at least 50% and 25% higher than previously forecast, respectively. The Columbus, Ind. -based diesel engine maker announced yesterday during its annual meeting that it expects sales revenue to grow 15% this year as demand revives for big-truck diesels. Cummins says first-quarter earnings will be 65-75 cents per share vs. its previous guidance of 40-50 cents. It now expects full-year per-share earnings to be $4-$4. 20 vs. $3. 20-$3. 40 forecast earlier.
HYBRID, CLEAN-DIESEL AWARENESS GROWS. Three out of four U. S. consumers who bought a light vehicle over the past three years are aware of hybrid electric powertrains, according to a survey by J. D. Power and Associates. The study also says 40% of consumers claim to know something about clean diesel engines. Awareness of both technologies is about 10 percentage points higher than it was when the firm conducted a similar study two years ago. J. D. Power points out that interest in both technologies will increase as fuel prices rise. The consumers it
surveyed predict gasoline costs will rise an average of only 2% annually, although about 25% expect fuel prices to increase at three times that rate. The researchers estimate the cost premiums for clean diesels and hybrid powertrains are $2,500 and $4,000, respectively—prices that would take many years to offset through fuel savings.