Cummins Inc. this week announced that the board of directors authorized the company to repurchase up to $1 billion in shares of common stock.
The program was approved as the company approaches completion of its current $1 billion share repurchase program approved by the board in February 2011.
“The announcement of this new repurchase program reinforces our commitment to returning value to shareholders and follows a 25-percent increase in the dividend announced in July,” said Tom Linebarger, Cummins chairman and CEO. “We continue to have confidence in the company’s future performance and our strong balance sheet allows us the flexibility to fund future growth and to continue to reward shareholders.”
Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins earned $1.85 billion on sales of $18.0 billion in 2011.