Cummins Inc. expects significant sales and profit growth in 2011 and beyond as it takes advantage of a number of long-term global economic trends and the recovery of key U.S. markets, chairman and CEO Tim Solso told shareholders this week at the company’s annual meeting.
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 — Solso said. Cummins earned a record EBIT of $1.7 billion on sales of $13.2 billion in 2010.
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. In addition, the Cummins expects its joint ventures to make $300 million in capital investments to expand their businesses.
“The actions we have taken over the past two years have kept Cummins strong during the recession and have set the stage for a period of sustained profitable growth,” Solso said. “We have more growth opportunities ahead of us today than at any time in our history.
“Our challenge is to pursue those opportunities with the same discipline we displayed during the recent global recession. I am confident that we have the people and strategies in place to lead us to accelerated growth over the next several years.”
In addition, the Cummins board approved a quarterly common stock cash dividend of 26.25 cents per share. The dividend is payable on June 1, to shareholders of record on May 20.
Headquartered in Columbus, Ind., Cummins Inc. is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.