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Cummins Inc. (CMI) said Thursday it isn't anticipating any recovery in its markets this year, as the engine maker reported an 81% plunge in second-quarter profit.

The company cut revenue projections for some hard-hit segments of its business, but it maintained its previous revenue and income guidance for 2009 and its second-quarter earnings topped analysts' expectations.

Cummins' stock was recently trading up 6.1% at $42.18 a share.

Chairman and Chief Executive Tim Solso said the company is proceeding under the assumption that it "won't see any recovery" in its end markets this year. He said he isn't expecting a widespread recovery to get under way until late 2010.

Solso noted that demand has improved somewhat in China, India and Brazil.

"We're seeing a heartbeat in China and India, but it's not a full-blown recovery yet and Brazil is improving too," Solso said during a conference call with Wall Street analysts. "The stimulus activity by their governments has been relatively successful so far."

He added that he's seen no signs of recovery yet in the U.S. and European engine markets.

Cummins reported lower second-quarter sales across all of its business segments. Demand for truck engines remained especially weak in the quarter, as reduced shipping volumes caused by the slumping economy held down demand for new commercial trucks.

Cummins' highway truck engine revenue fell 44% in the quarter from 2008 to $729 million. Included in this figure was a 54% revenue decline from light-duty truck engines, largely because of disrupted production from Chrysler's bankruptcy. Cummins said it has resumed engine deliveries for Dodge heavy-duty pickup trucks as a result of Chrysler's bankruptcy reorganization and expect to continue supplying engines to the auto maker in 2010.

The Columbus, Ind., company anticipates revenue from heavy-duty truck engines to fall by 28% this year from 2008, compared with a 20% decline anticipated after the first-quarter. It forecast that industrywide production of heavy duty trucks in North America this year will total 98,000, down from its first-quarter prediction of 113,000 trucks.

Cummins also widened its forecasted revenue declines from medium-duty trucks and recreational vehicles. It anticipates revenue from industrial engines will plunge 43% this year from 2008.

Cummins' second-quarter income tumbled to $56 million, or 28 cents a share, from $293 million, or $1.49 a share, a year earlier. Restructuring costs clipped profit by 2 cents a share. Net sales in the quarter plummeted 38% to $2.43 billion.

Analysts polled by Thomson Reuters expected earnings of 26 cents a share on revenue of $2.47 billion. Gross margin in the quarter fell to 18.4% from 22.6% on lower production.

The company left its guidance for 2009 unchanged. It expects 2009 revenue to decline about 30% from 2008 to roughly $10.04 billion. Cummins' is forecasting earnings before interest and taxes of about $502 million, translating into about $1.48 a share.

Cummins plans to launch four new engines over the next year to position the company for robust sales growth as demand improves.

"We are bringing out more products in 2010 than we've ever done as a company," Solso said. "We will have a significant opportunity for growth."

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com

(Mike Barris contributed to this report.)