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Cummins Cuts Sales Outlook

Maker of engines and related components on Thursday reduced its 2008 sales forecast, citing declines in its markets around the world.

COLUMBUS, Ind. (AP) -- Cummins Inc., which makes engines and related components, on Thursday reduced its 2008 sales forecast, citing declines in its markets around the world.

Cummins now expects 2008 sales to increase 9 percent over 2007, instead of its earlier forecast of 12 percent. That implies the company expects sales of $14.22 billion for the year.

Analysts surveyed by Thomson Reuters expect full-year sales of $14.61 billion, on average.

Cummins said its engine and components segments are seeing the most significant declines due to the global economic downturn, with fourth-quarter segment revenue down 15 percent compared with its earlier guidance.

The company said it does not expect market conditions to improve significantly in the near future, and is taking steps to manage costs and production levels. Last week the company said it would cut at least 500 white-collar workers.

Shares of Cummins fell $1.55, or 5.8 percent, to $25.28 in morning trading.