Senior leaders of Cummins told a group of 150 Wall Street analysts and shareholders it has set a target of $30 billion in sales with EBIT of 18 percent of sales by 2015. Cummins chairman and CEO Tim Solso, president and chief operating officer Tom Linebarger, chief financial officer Pat Ward and other executives discussed opportunities for all four of the company’s operating segments to generate strong revenue growth and increased profitability.
The company expects to grow at an approximate annual growth rate of 14 percent between now and 2015 to reach the $30 billion sales target. While expressing confidence in achieving its goals, Cummins management admitted concerns about the pace of growth in the global economy, particularly in developed countries.
“Despite the current uncertainty surrounding the strength of economic growth in some regions of the world, 2011 will be a record year for Cummins,” said Solso. “We have outstanding products, great global partners and the financial strength of the company has never been better. The company has an extremely strong leadership team that has demonstrated its ability to perform through the cycle and I am very confident that this team will lead the company to new heights of performance.”
According to Cummins executives, beneficial trends include:
- Tightening diesel engine emissions standards worldwide;
- The rising price of energy, increasing demand for fuel-efficient engines, while the growing gap between supply and demand for electricity in developing economies will benefit Cummins’ power-generation business;
- Increasing infrastructure investments in many of the company’s markets will continue to drive demand for Cummins engines and power-generation technology.
“The company has demonstrated that it can perform well in difficult economic conditions as experienced in 2008/2009, while at the same time continuing to invest in the key technologies and capabilities that will drive our company’s growth,” added Linebarger.Cummins Inc. is based in Columbus, Ind.