The Cummins Inc. board of directors this week authorized the company to repurchase up to $1 billion in shares of common stock in a move to provide increased shareholder value.
The program was approved in anticipation that the company will soon complete its current $500 million share repurchase plan approved by the board in December 2007.
The board also approved a quarterly common stock cash dividend of 26.25 cents per share. The dividend is payable on March 1, to shareholders of record on Feb. 18. Cummins increased its dividend by 50 percent to its current level in the third quarter of 2010.
“Cummins remains committed to returning value to shareholders and this new repurchase program further confirms our confidence in the company’s future performance,” said Tim Solso, Cummins chairman and CEO.
Cummins Inc., Columbus, Ind., 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.