Cummins
Inc. is shining in an otherwise dismal economy as it's on pace to
shatter its 2007 net-earnings record of $739 million, which if
accomplished would mark the fifth-consecutive year of record growth.
Cummins Inc.
At A Glance
Cummins
Inc.
Columbus, Ind.
Primary Industry: Motor Vehicle Parts
Number of Employees: 37,800
2007 In
Review
Revenue: $13.05 billion
Profit Margin: 5.66%
Sales Turnover: 1.59
Inventory Turnover: 6.80
Revenue Growth: 14.84%
Return On Assets: 9.90%
Return On Equity: 26.37%
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The Columbus, Ind., maker of large diesel engines used in everything
from pickup trucks to mining equipment said during the company's annual
shareholders' meeting in May that it's headed for another strong year.
"Cummins remains on track for further profitable growth -- this
year and beyond -- despite the economic uncertainty affecting some of
our U.S. consumer-oriented markets," said Chairman and CEO Tom
Solso in a May 13 statement. "We have gained share in key markets
in the U.S. in the past year, and our international presence continues
to strengthen."
Indeed, the company has laid out a plan for worldwide growth with 19
new plants and 42 capacity expansion projects in the works. Among the
company's new projects are major expansions in India for both midrange
and high-horsepower engines, power generation and turbochargers, and a
fuel system plant in China.
Cummins also has introduced or is planning several new products such
as light-duty engines in the United States and China by 2010, engines
that meet more stringent global emissions standards and a common-rail
fuel system.
In 2008 the company expects its financial performance will be
bolstered by demand for its emissions technology, its expanding
presence in emerging markets and surging demand for its power-generation
products because of increasing power needs in developing countries.
If Cummins' forecast for a strong 2008 holds true, it could be on
track to meet its growth targets for the year, which include a 12%
sales increase, an earnings before interest and taxes goal of 10% of
sales, a 20% return on equity and a 25% return on average net assets.
Meanwhile, the company named Tom Linebarger its new president and
COO effective Aug. 1. Linebarger, 45, currently serves as president of
Cummins Power Generation and has been executive vice president at the
company since 2005. He's replacing Joe Loughrey, who will serve as vice
chairman until he retires in March 2009.
Linebarger helped rebuild the Power Generation business from an
operating loss of $19 million in 2003 to an operating profit of $334
million in 2007.
