Diesel engine manufacturers on a high, but it could be short-lived

摘要

Heavy-duty diesel engine manufacturers have clocked up some of their best results yet in the first half of 2006. But an abrupt downturn is expected next year. Spurred on by strong demand in the US, together with continued growth in emerging markets such as China, India and Latin America, Cummins and Caterpillar have made a flying start to 2006. In the first six months Cummins sold 305,500 engines, over 21 per cent more than in the first half of last year. Turnover from engine sales is up by 18 per cent to US$3.72 billion (£1.97 billion) and operating profit (earnings before interest and taxes) rose by 35 per cent to US$369 million (£195 million). "We had a terrific second quarter and remain on pace for a record 2006," says Cummins chairman and chief executive Tim Solso.