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Cummins Posting Significant Profits

By Network Indiana

Posted May 11, 2011

Cummins is projecting significant sales and profit growth in 2011 and beyond. The Columbus-based company is taking advantage of a number of long-term global economic trends and the recovery of key U.S. markets, chairman and Chief Executive Officer Tim Solso told shareholders during the company‘s annual meeting.

Cummins corporate communications director Mark Land says Cummins is expecting a prosperous next few years.

"When you take the continuation of very strong growth we see in emerging markets," he said, "and add on to that a truck market that is improving, but has more improvement in it we think over the next 2-3 years, it sets the stage for our markets to be much better."

The company expects 2011 sales to grow by nearly 30 percent from $13.2 billion in 2010 to $17 billion and earnings before interest and taxes to be 14 percent of sales this year, both company records.

Land says the company will continue to work to increase shareholder value.

"It was a very good year last year," he said. "Our share value was up over 140 percent."

The company also will significantly increase its investment in the business this year, expecting to spend as much as $650 million on capital projects to increase capacity and invest in new technologies and products for the future.

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