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Cummins shares soar on 2Q beat

COLUMBUS, Ind. (AP) -- Cummins Inc.'s second-quarter net income fell nearly 12 percent on weaker margins and a drop in revenue from several segments.

The company, however, beat market expectations for the period, and its shares jumped in trading Tuesday.

Cummins reported net income of $414 million, or $2.20 per share, for the period that ended June 30. That is down from $469 million, or $2.47 per share, earned in last year's second quarter. Its revenue increased nearly 2 percent to $4.53 billion from $4.45 billion.

Analysts polled by FactSet, on average, expected earnings of $1.98 per share on revenue of $4.25 billion.

Cummins said that its revenue in North America increased by 7 percent during the quarter, helping offset a 4 percent decline in international revenue. Growth in Brazil and China was outweighed by weaker demand in Europe, India and Mexico.

The company's revenue fell in all of its segments except its distribution and components business, where it increased 8 percent and 1 percent, respectively. It also pointed to gains in its medium truck market as a beneficial factor for the period.

Cummins said that it expects its full-year revenue to be flat by comparison to 2012. It posted revenue of $17.3 billion last year.

Analysts had expected revenue of $17.03 billion for 2013.

Shares of the Columbus, Ind.-based company jumped $3.92, a more than 3 percent increase, to $120.36 by early afternoon Tuesday. Its stock hit as high as $123.64 earlier in the day, a new 52-week peak.