=Cummins (CMI) reported earnings on Tue 1 Aug 2017 (b/o)

* Q2 EPS $2.53 vs est $2.58

* Raises full-year revenue outlook

* Maintains EBIT of 11.75-12.5 pct of sales  

Aug 1 (Reuters) - Cummins Inc's shares fell as much as 8.3 percent after the U.S. engine maker's profit missed Wall Street estimates, partly due to higher costs.

The company took a $31 million charge in the second quarter ended July 2 related to a component quality issue in its power systems business that makes generators and industrial engines.

Cummins said it raised its warranty reserve for components business, which makes turbochargers and fuel systems for engines, by $36 million in the quarter.

The engine maker's operating costs rose 13.4 percent to $770 million in the quarter.

The company's earnings before interest and tax (EBIT) fell to 12.2 percent of sales, compared with 13.1 percent, a year earlier.

Cummins also said it would invest more in new technologies, including electrified power trains, in the second half of 2017.

"We believe that the segments in the market that we serve, some will find electrified power trains to be advantageous in the next five or 10 years," Chief Executive Tom Linebarger said on a conference call.

Cummins, which counts PACCAR Inc, Daimler AG and Navistar International Corp among its customers, kept its 2017 forecast for EBIT unchanged, despite raising the revenue outlook.

The Columbus, Indiana-based company said it expected 2017 forecast for EBIT to be in the range of 11.75 percent to 12.5 percent of sales. Cummins raised it 2017 revenue growth forecast range to 9 percent to 11 percent, from 4 percent to 7 percent, previously.

Analysts on average were expecting full-year EBIT at 11.9 percent of sales and revenue growth of 5.5 percent, according to Thomson Reuters I/B/E/S.

Cummins, which provides engines for large trucks that haul a majority of U.S. freight, said revenue from North America, its biggest market, increased 13 percent in the quarter.

Pick-up in orders for heavy-duty trucks, whose production had fallen in the United States due to a supply glut, is helping Cummins' sales growth in 2017.

The company said its international sales grew 11 percent in the quarter due to strong demand in China and India.

Net income attributable to Cummins rose 4.4 percent to $424 million, or $2.53 per share, in the quarter, missing the average Street estimate of $2.58 per share.

Net sales were up 12.1 percent at $5.08 billion, beating the analysts estimate of $4.80 billion.