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Global Growth Reality Hits As Cummins Cuts Guidance And 1500 Jobs

Tyler Durden's picture




 

CMI is down over 7% after-hours (to three-month lows) as it seems the 16% cut expectations in Aluminum demand that Alcoa just announced can no longer be ignored. Reality is that Cummins is slashing guidance and cutting jobs in "response to the weakening global economy."

  • *CUMMINS TO CUT UP TO 1500 JOBS, LOWERS YEAR REV, EBIT FORECASTS
  • *CUMMINS SEES YEAR EBIT ABOUT 13.5%, SAW 14.25%-14.75%  :CMI US
  • *CUMMINS PRELIM 3Q REV. ABOUT $4.1B, EST. $4.425B       :CMI US
  • *CUMMINS SEES 2012 REV. $17B, SAW $18B, EST. $18.11B    :CMI US

 

 

Cummins Lowers 2012 Revenue and EBIT Guidance. Company Also Announces Necessary Actions to Respond to Global Economic Slowdown.

Business Wire

COLUMBUS, Ind. -- October 09, 2012

Cummins Inc. (NYSE: CMI) today lowered its full year revenue and EBIT guidance for 2012 and also announced actions to respond to the weakening global economy.

The Company lowered its full year revenue outlook for 2012 to approximately $17 billion compared to the Company’s previous guidance of $18 billion. Earnings Before Interest and Taxes (EBIT) are now expected to be approximately 13.5% for the year, compared to prior guidance of 14.25% to 14.75%. Based on preliminary results and subject to normal quarterly financial statement closing procedures, third quarter revenues are expected to be approximately $4.1 billion and EBIT is expected to be approximately 12.0%. The Company does not provide quarterly revenue or earnings guidance.

We continued to see weak economic data in a number of regions during the third quarter increasing the level of uncertainty regarding the direction of the global economy. As a result of the heightened uncertainty, end customers are delaying capital expenditures in a number of markets, lowering demand for our products,” said Tom Linebarger, Chairman and Chief Executive Officer. “We have lowered our full year revenue forecast for several markets, with the most significant changes in North America heavy duty truck and international power generation markets. Demand in China has weakened in most end markets and we have also lowered our forecast for global mining revenues. EBIT margins will also be below our previous guidance primarily due to the sharp reduction in revenues.”

The Company announced that it is taking actions necessary to respond strategically to the current environment by cutting costs while maintaining investments in key growth programs. Actions include a number of measures to reduce cost including planned work week reductions, shutdowns at some manufacturing facilities, and some targeted workforce reductions. The Company expects to reduce its workforce by between 1000 and 1500 people by the end of the year. The updated EBIT guidance does not include the benefits or costs of these actions.

“Responding quickly and strategically during these challenging economic times will pave the way for Cummins to emerge stronger as a company when markets inevitably rebound,” continued Linebarger. “Taking these actions now will allow us meet customer needs, maintain strong financial performance and allow us to capitalize on future growth opportunities.”

Details of third quarter results and the updated full year outlook will be covered during the previously scheduled third quarter earnings conference at 10 a.m. EDT on October 30, 2012. The Company will not be making any further statements about either the third quarter or the full year until the third quarter earnings conference.

 

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Tue, 10/09/2012 - 17:41 | 2872669 Conman
Conman's picture

Here comes the cries for QE4inity

Tue, 10/09/2012 - 17:44 | 2872678 FL_Conservative
FL_Conservative's picture

OMG....this means that U-3 will be back above 8%.  Quick.....manufacture some more temporary jobs.  Cut their shovels in half or something.

Tue, 10/09/2012 - 17:49 | 2872690 Stoploss
Stoploss's picture

But... But... But...

 

 

 

HAHAHAHAHAHAHAHAH!!!!!!!!!!

Tue, 10/09/2012 - 18:10 | 2872753 Surly Bear
Surly Bear's picture

It wasn't big enough....

Tue, 10/09/2012 - 18:13 | 2872758 Temporis
Temporis's picture

Applied Materials, my companies biggest customer announced a 9% cut of their work force late last week... (900 - 1300 people)

http://www.businessweek.com/news/2012-10-03/applied-materials-to-cut-up-...

Shit runs down hill... Im expecting layoffs where I work sometime later this month. (On top of the 11% *60 people* we lost 2 months back).

 

HOPE AND CHANGE!!!! 2012!

4 MORE YEARS... fuck Obama...

Tue, 10/09/2012 - 18:14 | 2872766 davidsmith
davidsmith's picture

Don't worry about Applied.  Romney has big defense contracts lined up for them.

Tue, 10/09/2012 - 18:59 | 2872900 yogibear
yogibear's picture

Didn't they relocate some of their manufacturing to China?

Tue, 10/09/2012 - 19:22 | 2872956 cossack55
cossack55's picture

Only their nuke warhead triggering mechanism division. No sweat.

Tue, 10/09/2012 - 20:34 | 2873096 barroter
barroter's picture

If it made them a profit...they'd do it.

 

Tue, 10/09/2012 - 18:20 | 2872791 RSloane
RSloane's picture

Dear God that's so tragic. I wish you the very best of luck and hope that your job is safe.  

Tue, 10/09/2012 - 18:24 | 2872813 Temporis
Temporis's picture

Thank you

Tue, 10/09/2012 - 23:30 | 2873462 Tommy Gunner
Tommy Gunner's picture

I would have thought that someone posting on ZH would know better than to play these partisan games. 

You are aware that both political parties are completely captured by corporations and their lobbyists and are legally bribed to do their bidding - aren't you?

The only difference betweent the parties is who gave who the most cash - that is reflected in their policies. 

These RAT BASTARDS don't give a fuck about you - in fact I am sure they all laugh at fools who sit glued to these pointless 'debates' as if they meant anything.

 

You deserve a short hard right hand to the kidneys ... followed by a head butt to the nose (smashing it into your nasal cavity) for posting such utter, utter shit!

 

Now go and finger your fucking rosary and think about what I have said

Wed, 10/10/2012 - 09:31 | 2874553 Temporis
Temporis's picture

I would have thought that someone posting on ZH would know better than to play these partisan games.

I said "Fuck Obama" because prior to saying that, all I heard was "Hope and Change" bullshit for the last 4 years and all ive seen is shit getting worse... and how often do you read this site? (Example: http://www.zerohedge.com/news/16oooooooooooobama)

You are aware that both political parties are completely captured by corporations and their lobbyists and are legally bribed to do their bidding - aren't you?

Yep, my post was about Applied laying off 1,300 people on top of the 1,500 Cummin's is letting go. Guessing the only thing you read was "Fuck Obama".... selective reading much libtard?

These RAT BASTARDS don't give a fuck about you - in fact I am sure they all laugh at fools who sit glued to these pointless 'debates' as if they meant anything.

I know this Captian Obvious.

You deserve a short hard right hand to the kidneys ... followed by a head butt to the nose (smashing it into your nasal cavity) for posting such utter, utter shit!

Im thinking you have anger issues... did your boyfriend break up with you and tell you he was going to vote Romney? Is that why your mad? awwww....

Now go and finger your fucking rosary and think about what I have said

This made no sence. When did religon get thrown into a topic about unemployment? Oh wait I said "Fuck Obama" so obviously im Catholic... yah that makes sence. Your post fails. Remember when you slit your wrists after the elecetions because Mr. Hope and Change loses, go up with the razor and not across.

Tue, 10/09/2012 - 17:42 | 2872671 DoChenRollingBearing
DoChenRollingBearing's picture

Cummins is an interesting company with great long-run prospects, especially with CAT getting out of the truck diesel engine business.  If things are BAD for Cummins, then, yes, things look BAD worldwide.

Ominous, beware.

Tue, 10/09/2012 - 17:47 | 2872682 RacerX
RacerX's picture

Cummins needs to expand their business to manufacture the "Bernanke" helicopters.

Tue, 10/09/2012 - 17:52 | 2872708 Dr. Engali
Dr. Engali's picture

+1

Tue, 10/09/2012 - 17:58 | 2872722 yabyum
yabyum's picture

DoChen,How can this be? Every Joey-bag-o-donuts in this town has a brand new Dodge diesel truck.

Wed, 10/10/2012 - 08:52 | 2874457 Metalredneck
Metalredneck's picture

Working with Cummins products on a daily basis, I see why they are cutting back.  Their only saving grace is that they make a system that works with the 2010 emissions standards.  Navistar just signed up to use their emissions stuff, because their in-house stuff is a big fail.

Detroit Diesel is not much better, so they will be fine, with the right susidies & lobbyists.

Tue, 10/09/2012 - 17:42 | 2872672 Dr. Engali
Dr. Engali's picture

Hard landing bitchez! Ben you better print faster.

Tue, 10/09/2012 - 18:44 | 2872865 Ineverslice
Ineverslice's picture

 

Bennie..... auto rotate equipped?

Tue, 10/09/2012 - 17:48 | 2872683 Squid Vicious
Squid Vicious's picture

I just Cummins'd my pants

Tue, 10/09/2012 - 17:48 | 2872686 Sweet Chicken
Sweet Chicken's picture

How the fuck is gold down in midst of all of this bullshit?!

Tue, 10/09/2012 - 17:50 | 2872693 fonzannoon
fonzannoon's picture

The sheep are running towards the burning house. They will turn eventually.

Tue, 10/09/2012 - 17:50 | 2872696 ar01
ar01's picture

Gold crashed when the markets tanked in 2008 -- when a recession hits, everyone flees to liquidity/safety. 

Tue, 10/09/2012 - 17:54 | 2872710 Sweet Chicken
Sweet Chicken's picture

Begs the question, what is safe in this fiat drenched world we live in?!?!

Tue, 11/20/2012 - 15:59 | 2872732 ar01
ar01's picture

.

Tue, 10/09/2012 - 18:13 | 2872763 davidsmith
davidsmith's picture

Try defense-related stocks.  Romney will double defense spending in two years.  Don't bother with ANY big media baloney, liberal or conservative.  Mitt is busy spreading the word through his surrogates: BIG BIG BIG defense increases on the way.  See how Obama kept referring to "increases the Pentagon says it doesn't need" in his HORRIBLE debate?  He knows what's on the way.  He also found out that, yes, although Romney's defense increases are going to be PURE welfare and graft, nobody cares because PEOPLE NEED MONEY.  

 

Poor Prince Barack, he's learned the hard way that food stamps and hope are not enough to get him reelected, especially when people realize he's a Goldman Sachs whore/hood:

 

http://www.navytimes.com/prime/2012/10/PRIMEnavy-romney-plan-lehman-100912w/

Tue, 10/09/2012 - 18:27 | 2872823 jonjon831983
jonjon831983's picture

Any ideas which ones would be attractive?  Don't think I'd want to go via ETFs.

Tue, 10/09/2012 - 18:36 | 2872846 davidsmith
davidsmith's picture

Electric Boat.

Sikorsky Aircraft

General Electric Co.

Pratt and Whitney

Tue, 10/09/2012 - 19:21 | 2872955 LetThemEatRand
LetThemEatRand's picture

Interesting coincidence that GE's former CEO went full out anti-Obama earlier this week (not that I disagree with him, but clearly for different reasons).

Tue, 10/09/2012 - 19:23 | 2872958 azzhatter
azzhatter's picture

I hate GE with a passion but I think Immelt is already slobbering on Romney's knob. 

Tue, 10/09/2012 - 19:36 | 2872995 davidsmith
davidsmith's picture

No need.  Are you really telling me the trust department Republicans don't know it's time to rev up defense spending, and have already passed the word?  This is all baked in.  Things will crash sufficiently to oust Krazy Barry, and then we proceed with defense ramp up.

 

The pathetic joke of all this is the inherent weakness of liberal Democrats: they have this fixation on these little, pathetic prima donna princes (think Carter, think Kerry, think Krazy Barry) and keep nominating them, only to see them stumble.  The Democratic Party is sick sick sick.  All Obama's supporters are sick sick sick.  And then when these little coddled brats have to face reality, they crumple.  

 

There won't be any recovery for Krazy Barry in the next debates.  What can he say in the defense debate except, "I won't spend more money"?  That'll go over like a turd in the punchbowl.  What a clown!  Too prissy to stoop to the defense spending trough.  But Mitt will!!  So you'll get this whorehound Barry saying in a snit, "Well, if you all don't appreciate me, I'll just take my ball and go home!"  Good riddance to this monster whore!

 

Wed, 10/10/2012 - 04:46 | 2873882 jeff montanye
jeff montanye's picture

obama whored it up with the banksters and they are now after the new meat with the magic underpants anyway.  he should have prosecuted the shit out of them, reorganized the banks a la the nordic banking crisis, the economy would have been better and he would have been reelected if he showed up for the debate drunk.

Tue, 10/09/2012 - 19:44 | 2873013 jonjon831983
jonjon831983's picture

Sikorsky + P&W

Translation: UTX: United Technologies

 

Electric Boat

GD: General Dynamics

Tue, 10/09/2012 - 20:04 | 2873062 jonjon831983
jonjon831983's picture

Managed to dig up a BI post about top 25 "defense" companies... pretty nice, has quick synopsis of how they're involved.

 

http://www.businessinsider.com/top-25-us-defense-companies-2012-2?op=1

 

General Dynamics... GD 65.94 -0.51 (-0.77%) 23.26B 978,548.00 66.52 66.89 65.94
United Technologies... UTX 77.33 -1.04 (-1.33%) 70.51B 4.12M 78.21 78.49 77.33
Honeywell International... HON 60.68 -0.60 (-0.98%) 47.36B 3.11M 61.31 61.36 60.51
Oshkosh Corporation OSK 27.24 -0.63 (-2.26%) 2.50B 601,092.00 27.62 27.94 27.17
The Boeing Company BA 70.64 +0.07 (0.10%) 53.11B 4.12M 70.7 71.21 70.36
Lockheed Martin... LMT 93.72 -0.29 (-0.31%) 30.40B 806,019.00 94.07 94.82 93.71
CACI International Inc CACI 49.26 -0.43 (-0.87%) 1.12B 421,936.00 49.64 50.07 49.2
Goodrich Corporation GR 127.48 16.05B 0.00
Navistar International... NAV 22.26 -0.55 (-2.41%) 1.53B 1.39M 22.8 22.95 22.23
Mantech International... MANT 22.01 -0.58 (-2.57%) 812.95M 102,175.00 22.62 22.62 22
Hewlett-Packard Company HPQ 14.37 -0.09 (-0.62%) 28.25B 29.64M 14.4 14.49 14.1571
Textron Inc. TXT 25.26 -0.37 (-1.44%) 7.10B 3.16M 25.65 25.79 25.19
Rockwell Collins, Inc. COL 53.51 -0.51 (-0.94%) 7.61B 915,460.00 54.04 54.41 53.35
Alliant Techsystems Inc. ATK 51.19 -0.75 (-1.44%) 1.67B 182,277.00 52.03 52.03 50.91
URS Corp URS 35.65 -0.37 (-1.03%) 2.74B 508,715.00 36 36.09 35.52
KBR, Inc. KBR 29.67 -0.67 (-2.21%) 4.37B 1.27M 30.29 30.38 29.56
Exelis Inc XLS 10.87 -0.15 (-1.36%) 2.03B 632,068.00 11.04 11.04 10.765
General Electric Company GE 22.62 -0.30 (-1.31%) 238.84B 39.18M 22.94 22.97 22.6
Computer Sciences Corp. CSC 31.28 -0.65 (-2.04%) 4.86B 991,255.00 31.84 31.91 31.01
SAIC, Inc. SAI 11.29 -0.09 (-0.79%) 3.86B 2.52M 11.4 11.43 11.24
L-3 Communications... LLL 72.72 -0.48 (-0.66%) 7.02B 300,017.00 73.25 73.68 72.63
Raytheon Company RTN 55.02 -0.30 (-0.54%) 18.27B 1.77M 55.32 55.5799 54.97
Northrop Grumman... NOC 69.00 -0.09 (-0.13%) 17.06B 1.27M 69.11 69.56 68.69

Tue, 10/09/2012 - 18:22 | 2872805 sessinpo
sessinpo's picture

PMs and most every commodity crashed in deflationary periods. The reason: people needed to raise cash to service debts still denominated in fiat currency. In other words, a person has a mortgage or some other debt obligation. That person has $100k in gold. But creditor won't take your gold. Creditor wants cash. Debtor has to sell gold holdings to raise cash to pay creditor which puts downward pressure on gold.

 

So that takes you back to the debate of inflationary or deflationary. I would think that after countless trillions printed, you'd have hyperinflation by now unless, quite possibly all that money printed, is servicing trillions of dollars in debt - and in a way disappearing, not circulating through the ecnomony like hyperinflationary pressures would require. Instead, the money is being hoarded for payments and future payments in an uncertain economic future.

Tue, 10/09/2012 - 17:49 | 2872691 slaughterer
slaughterer's picture

The Cummins guidance cut will damage a wide range of stocks tomorrow.  --At least, in a sane world.  

Tue, 10/09/2012 - 17:51 | 2872701 fonzannoon
fonzannoon's picture

This is just old. Cummins, Starbux, Qualcomm....etc etc etc....all will warn...all will guide down.....the only question is will they be bought again....

Tue, 10/09/2012 - 17:55 | 2872715 Dr. Engali
Dr. Engali's picture

Rollover time, the reality of margin squeezes will start to hit home.

Tue, 10/09/2012 - 18:01 | 2872731 fonzannoon
fonzannoon's picture

Doc I think you are using too much logic. You are rationally thinking this through and coming to conclusions that should be drawn by intelligent people....and that is where you lose me. In my world of infinite money printing the rules change in the middle of the game and somehow we end up 3 months from now all scratching our heads at how they "did it again". The economy continues to fall apart as the market becomes some other kind of animal that no longer bears any resemblance to whatever it ised to be. Which I guess, was some kind of economic barometer.

 

Tue, 10/09/2012 - 18:07 | 2872747 Dr. Engali
Dr. Engali's picture

I agree whole heartedly Fonz. We've been here a while wondering the same thing..."what's holding this thing up"? But I believe QE is priced in,and I don't think the market can be pushed up to new highs without even more stimulus than we are currently getting. They may be able to keep it churning sideways ( and I struggle with that) , but I don't think there is any upside.

Tue, 10/09/2012 - 18:16 | 2872775 fonzannoon
fonzannoon's picture

Man if you think about what's on the line here....you gotta believe (at least I do anyway) Pension funds etc. etc. etc. have all fallen for the don't fight the fight line and are all in here. If there is a big correction and some of these entities severely miss their funding targets it's just going to escelate things....thats why I think the fed will ditch all the rules if they have to and full blown out in the open buy everything eventually to (try) prop this bitch up.

Tue, 10/09/2012 - 18:21 | 2872799 Dr. Engali
Dr. Engali's picture

I think that's inevitable. The same path they took in Japan, but their market still ended up much lower. I don't know maybe I'm wrong but it sure feels like it's ready to turn south.

Tue, 10/09/2012 - 18:28 | 2872828 fonzannoon
fonzannoon's picture

By the way, I was wandering around the Steeler's game under the scoreboard with a beer right before the 3rd quarter started and got nailed in the head with a practice field goal that must have went wide. It was awesome. I have the ball.

Tue, 10/09/2012 - 18:32 | 2872842 Dr. Engali
Dr. Engali's picture

You're f..Ing kidding me?! That is cool.

Tue, 10/09/2012 - 23:26 | 2873467 Nobody For President
Nobody For President's picture

Nailed in the HEAD?

Well, that explains a lot...

Tue, 10/09/2012 - 17:56 | 2872717 Cursive
Cursive's picture

@slaughterer

Strong like bull diesel.

Fri, 10/12/2012 - 08:03 | 2872723 ar01
ar01's picture

Who knows.. 

Tue, 10/09/2012 - 18:23 | 2872811 Meesohaawnee
Meesohaawnee's picture

if it were really a "market" so true

Wed, 10/10/2012 - 09:01 | 2874475 Winston Churchill
Winston Churchill's picture

Take your Lithium and smell the roses.

Must be a new variety though,smells like shit.

Tue, 10/09/2012 - 17:49 | 2872692 ar01
ar01's picture

The recession is here!

Tue, 10/09/2012 - 18:12 | 2872759 jal
jal's picture

The recession started 30 yrs ago.

That's when they started to cover it up with deficit spending.

 

Tue, 10/09/2012 - 17:51 | 2872703 Stoploss
Stoploss's picture

Oooooh Ben, yousofucked...

Tue, 10/09/2012 - 17:52 | 2872706 miker
miker's picture

QE nothing.  Once this thing starts imploding, Congress will hold up and crank out all kind of stimulus.  That is the only thing that will work in the short term.  In the long term, we're all fucked. 

Tue, 10/09/2012 - 18:41 | 2872860 hannah
hannah's picture

we havent even got to the 'FDR' moments yet with price controls, razing crops and WPA programs (for white people). we got a long road yet...

Tue, 10/09/2012 - 18:58 | 2872895 WillyGroper
WillyGroper's picture

And to the Republic for which it stands, 

 

http://www.youtube.com/watch?v=Euc9MMRtuSg

Tue, 10/09/2012 - 17:54 | 2872712 SDRII
SDRII's picture

Hey Klause no one gives a shit about you 30 minute diatribe. Just get to Q&A so you can explain why a increased environmental reserve and associated tax charges are non operating.

Tue, 10/09/2012 - 17:59 | 2872724 Dr. No
Dr. No's picture

Figures.  I was a month too soon on that short and stopped out.  Oh well.

Tue, 10/09/2012 - 18:00 | 2872729 lizzy36
lizzy36's picture

But But But Yum Brands....

Apparently Chinese eating more KFC, but need less truck engines. Sounds a lot like the Yanks.

Tue, 10/09/2012 - 18:07 | 2872748 Squid Vicious
Squid Vicious's picture

lol - whoever opens up the first SCOOTER store in China is gonna be crazy rich

Tue, 10/09/2012 - 18:13 | 2872757 Conman
Conman's picture

Guess you never been to china. Last thing they need is more scooters or bicycles.

 

http://4.bp.blogspot.com/_bD11zKvar2o/SFTHpdOgxpI/AAAAAAAACGw/9_zSd42X7_...

 

Tue, 10/09/2012 - 18:19 | 2872789 Squid Vicious
Squid Vicious's picture

but they will be getting more of this, eventually:

http://cdn.pophangover.com/wp-content/uploads/2012/07/2merdk8_dwRCP_19672.jpg

 

Tue, 10/09/2012 - 18:28 | 2872819 Conman
Conman's picture

Ahh that kind oif scooter. Is the China investment bank subsidizing scooters like medicaid/care/ whatever? When will they start subsidizing catheters? You realize the reaason fatasses ride scooters is because they are free not because they are fat and can afford to buy it?

Tue, 10/09/2012 - 18:42 | 2872862 hannah
hannah's picture

fuck - i'm opening a fortune cookie and chopstick franchise in china....wish me ruck.

Tue, 10/09/2012 - 18:09 | 2872752 Cursive
Cursive's picture

@lizzy36

The inflation in China is like no other.

Tue, 10/09/2012 - 18:16 | 2872776 Desert Irish
Desert Irish's picture

Nah it's all part of the great plan....Fill em up with "dirty bird" and they're going to need more truck engines for commuter vehicles....maybe

Tue, 10/09/2012 - 18:13 | 2872762 Randall Cabot
Randall Cabot's picture

"the 16% cut expectations in Aluminum demand that Alcoa just announced"

I hate to nitpick but 1/7 = 14.3%

Tue, 10/09/2012 - 18:14 | 2872769 booboo
booboo's picture

I hear that Darden (Red Lobster, Longhorn Steak, Capital Grill ect) is cutting way back on full time employee hours too, they stated that this is the result of the Affordable Health Care Act. Lets see if they cut 1500 employees back to twenty nine hours and hire 1500 part timers for eleven hours they created 1500 new jobs and still beat the system.

Tue, 10/09/2012 - 19:35 | 2872990 RSloane
RSloane's picture

That will be counted by the BLS as a vast improvement in the labor market!

Tue, 10/09/2012 - 20:26 | 2873082 Muppet Pimp
Muppet Pimp's picture

Full time employees are going to more and more become a thing of the past.  Obama care is the end for the middle class.  Contract work (1099 & zero benefits) is the new normal.  Obamao Bitchez!

Tue, 10/09/2012 - 19:40 | 2872998 LetThemEatRand
LetThemEatRand's picture

Darden's CEO made $8M last year, not counting various options.   That's $150K each week.  And that's almost $3M more than he made the year Obama took office.  Looks like Obama's policies are really killing him and his business.  But yeah, fuck the workers.   I'll bet he gives himself a big bonus for having the brilliant of idea of paying workers less and giving them fewer benefits.  One day when his restaurant chains start imploding because no one can afford to eat there anymore, he'll blame whomever is in office. 

Tue, 10/09/2012 - 20:40 | 2873112 barroter
barroter's picture

I NEVER saw a management team that didn't point fingers all around, blaming everyone else, when things crashed.

Tue, 10/09/2012 - 18:15 | 2872770 Meesohaawnee
Meesohaawnee's picture

well that should get crude to at least over 95 tommorrow.

Tue, 10/09/2012 - 18:17 | 2872782 Debeachesand Je...
Debeachesand Jerseyshores's picture

Not good when a worldwide industrial company like Cummins starting to pull in the horns and announce job cuts between 1000 and 1500 jobs.

Tue, 10/09/2012 - 18:27 | 2872822 Urban Redneck
Urban Redneck's picture

Probably about $100,000,000 million in salary, which feeds into tax revenue, local restaurants, iCrap etc.  And that's only one company's layoffs, among countless others.

Tue, 10/09/2012 - 18:20 | 2872787 max2205
max2205's picture

It's earnings time again and Wall Street is chomping at the bit for more information about the health of Corporate America.
Alcoa (AA) and Yum! Brands (YUM) kick off the unofficial start to earnings season after the bell Tuesday. Safeway (SWY) reports Thursday and JPMorgan (JPM) and Wells Fargo (WFC) report Friday.
But a new report by finance professors at Emory and Duke University raises questions about the quality of these earnings.
In an anonymous survey of CFOs last year, the study found that at least 20% of companies are "managing" earnings and using aggressive accounting methods to legally alter the outcome of their earnings reports.
What may surprise you is that these accounting methods used by CFOs to "manage" the numbers are completely legal.
Professor John Graham of Duke is a co-author of the report and joined The Daily Ticker's Aaron Task to discuss the report's findings.
Of the 20% of companies that manipulated their earnings to hit a target, Graham says, a surprising 40% did so to the downside, not the upside.
Why would companies downplay their numbers? To pad and improve future quarters' earnings.
"It does cause you to pause a little bit and think how should an investor interpret earnings numbers when they hear those announcements," says Graham.
He says investors should not put too much faith in one individual earnings report and suggests looking at companies over the long term. Graham argues that cash flows are a better baromoter than earnings.
The CFOs surveyed in separate report by Graham said they expect earnings to increase 6% over the next year.
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Tue, 10/09/2012 - 18:27 | 2872820 surf0766
surf0766's picture

It certainly looks like the communist/socialist plan for the destruction of capitalism is on track.

Tue, 10/09/2012 - 22:00 | 2873278 Race Car Driver
Race Car Driver's picture

We will bury you.

Your children will be Communists.

- Khruschchev

 

Goldwater lost.

 

 

Tue, 10/09/2012 - 18:35 | 2872843 chump666
chump666's picture

Priced out.

Asia screwed up with their end session rally, sold USDs and went all in.  USD goes bid after their close, futures term neg and Europe starts selling.

Any commodity price job, particularly iron ore after China holidays, will be trumped with manic USD buying.

Oil is bid on war tensions.

=

Volatility

Tue, 10/09/2012 - 20:03 | 2873061 crouton
crouton's picture

fuck off you worthless cunt :-)

Tue, 10/09/2012 - 18:45 | 2872867 John Law Lives
John Law Lives's picture

"  *CUMMINS PRELIM 3Q REV. ABOUT $4.1B, EST. $4.425B :CMI US  "

That is quite a drop in projected revenue.  Uncle Ben had better crank up the printing press...

 

Tue, 10/09/2012 - 19:10 | 2872920 ebworthen
ebworthen's picture

Priced in, baked in, markets to the moon made of cheese as long as Ben keeps pumping debt into a debt bubble.

Reality bubble!

Tue, 10/09/2012 - 20:00 | 2873057 haskelslocal
haskelslocal's picture

This isn't a job cut. They just realized they can't find anyone who's qualified for the job. /sarc previous post.

Tue, 10/09/2012 - 20:10 | 2873067 orangegeek
orangegeek's picture

Manufacturer Cummins into the tank - these are the sorts of jobs that typically carry a 1:6 ratio - one Cummins job to six feeder jobs.

 

Primary wave 3 down is just getting started.

 

http://bullandbearmash.com/chart/standard-poors-500-weekly-october-05-2012/

Tue, 10/09/2012 - 23:22 | 2873441 Tommy Gunner
Tommy Gunner's picture

Is there any way to print beyond infinity?

Tue, 10/09/2012 - 23:32 | 2873494 Nobody For President
Nobody For President's picture

The Company expects to reduce its workforce by between 1000 and 1500 people by the end of the year. 

 

Merry Christmas BitChezzz!

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