Cummins targets US$20bn in sales by 2014
By IBI Magazine
Cummins executives today told 130 Wall Street analysts and shareholders that the company is well positioned to take advantage of long-term economic and market trends. Cummins has targets of US$20bn in sales for 2014, with net income of 12.5 per cent of sales that year. The company reported sales of US$10.8bn in 2009, and forecasted a similar number this year. "We still have some challenges ahead of us, especially in the first half of this year, but I am extremely optimistic about the future," Tim Solso, chairman and CEO, told the meeting at the New York Stock Exchange. "We are in the best financial condition in the company's history and have an experienced leadership team that knows what it takes to successfully manage the company during both difficult times and times of significant growth." Solso said that "rapidly tightening" diesel engine emissions standards around the world as well as regulation of commercial vehicle fuel economy will help increase engine and component sales. The rising price of energy is also expected to increase demand for fuel-efficient engines. Cummins presence in large and growing international markets like China, India and Brazil will also add to its long-term growth. "We have managed the company very conservatively during the downturn, and as a result have lived up to our commitment to shareholders to produce a solid profit and generate significant cash in an extremely weak economic environment," Tom Linebarger, COO, said in the statement. "That work will allow us to emerge from the recession an even stronger company and one that is poised for growth." Linebarger said that its leadership in engine technologies, the complementary nature of its four business segments, and its large global footprint would help drive growth. Cummins also has joint ventures with 56 companies in 18 countries. That includes Cummins MerCruiser Diesel (CMD), its joint venture with Mercury Marine. The executives said they were "pleased" with Cummins' performance in the early part of 2010. Solso said they would provide further information when it reports it first quarter results on April 27, 2010.
(16 March 2010)
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