Columbus, Ind.-based Cummins Inc. continues to perform well despite the global economic downturn and is positioned for a period of sustained profitable growth once the recovery takes hold worldwide, chairman and CEO Tim Solso told shareholders last week at the company’s annual meeting.
Speaking from the Columbus Engine Plant, Solso told shareholders that the actions taken by the company over the past 18 months have allowed it to remain profitable, generate significant cash, serve customers well and continue to invest in critical technologies for the future. The company also has a number of long-term economic and market trends working in its favor, which will contribute significantly to its future success, Solso said.
“Over the past year, our employees around the world have continued to execute our strategy for remaining strong during the downturn extremely well,” Solso said. “As a result, the company expects higher sales and profits this year and already is focused on taking advantage of some significant future growth opportunities.”
Solso told shareholders that the company expects sales to reach $12 billion in 2010, an 11-percent increase from 2009, and Earnings Before Interest and Taxes, excluding restructuring and other charges, of 10 percent of sales. The company also expects to invest $400 million in capital projects in 2010, mostly to support initiatives related to new products and capacity expansion.
Solso affirmed the company’s long-term outlook, first shared with the investment community in mid-March, telling shareholders that he expects Cummins to reach $20 billion revenue with an EBIT margin of 12.5 percent in 2014 and to earn an average annual EBIT margin of 10 percent of sales from 2009-2014.
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.