Cummins (CMI) Weakness Tied to Concerns About Impact from VW-Navistar (NAV) Deal
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Weakness in Cummins (NYSE: CMI) Tuesday was tied to negative implications from Navistar's (NYSE: NAV) strategic alliance with Volkswagen Truck & Bus, which includes an equity investment in Navistar by Volkswagen Truck & Bus and framework agreements for strategic technology and supply collaboration and a procurement joint venture.
According to Bloomberg, Piper analyst Alexander Potter sees negative implications and noted that Cummins likely obtains about 5% of revenue from selling engines and components to Navistar, though he doesn't see impact on 2016-18 results.
Shares of Cummins opened lower by about 4%.
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