A strong second half is looking less and less likely for the industrial sector. Class 8 truck orders have been declining, Europe is not getting better, and emerging markets continue to weaken. Now we have Cummins (CMI) warning that management no longer expects 2012 revenue to grow from 2011 levels.
I have expressed some reservations in the past about Cummins' valuation
and the risk of engine market share loss to internal programs, I have
never questioned the quality of the business, or its status as a leader.
So then, if Cummins is now of the opinion that there will be no revenue
growth this year, where does that leave truck manufacturers and other
heavy equipment producers?
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Cummins - If The Good Are Struggling, Where Does That Leave The Rest?