Cummins Reports Third-Quarter 2002 Miscalculation

October 27, 2002 by Jeff Shepard

Cummins Inc. (Columbus, IN) announced that it discovered a miscalculation in the company's reported third-quarter diluted earnings per share. The correct amount is $0.96 per fully diluted share. The miscalculation does not impact the reported $39.0 million profit after taxes, any other reported numbers for the company, or any forward guidance.

Basic earnings per share of $1.03 remain unchanged. The company discovered the miscalculation as it prepared its Form 10-Q for the third quarter, which is filed within 45 days after the end of the quarter. Earnings and cash flow guidance for the fourth quarter and full-year 2002 remain as originally reported. Cummins expects to have full-year profits for 2002 of $0.40 to $0.50 per share. In addition, the company expects to generate over $100.0 million in free cash flow in 2002.