- Company targeting $30 billion in sales and 18 percent EBIT margin in 2015
NEW YORK, Sep 13, 2011 (BUSINESS WIRE) -- Senior leaders of Cummins Inc. (NYSE:CMI) today demonstrated their confidence in the Company's future by sharing new long-term targets for revenue growth and profitability.
Speaking at a meeting with approximately 150 Wall Street analysts and shareholders, Cummins Chairman and Chief Executive Officer Tim Solso, President and Chief Operating Officer Tom Linebarger, Chief Financial Officer Pat Ward and other top leaders of the business discussed opportunities for all four of the Company's operating segments to generate strong revenue growth and increase profitability.
Company leaders set a target of achieving $30 billion in sales, with Earnings Before Interest and Taxes (EBIT) of 18 percent of sales in 2015. The Company expects to grow at an approximate annual growth rate of 14 percent over the period to reach the $30 billion sales target. Management expressed its confidence in achieving these targets in 2015, but also acknowledged concerns about the pace of growth in the global economy, particularly in developed economies.
"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."
Leaders of the Company highlighted investments in new products and in its distribution network that will enable it to benefit from a number of important key trends that include:
- Tightening diesel engine emission standards around the world and regulations around commercial vehicle fuel economy that will allow Cummins to leverage its position as the technology leader in both emissions reduction and improving fuel efficiency.
- The rising price of energy is expected to further increase the demand for fuel-efficient engines, while the growing gap between the supply and demand for electricity in developing economies will benefit the Company's power generation business.
- Increasing globalization will continue to benefit Cummins as OEMs in developing countries look to leverage our technology and distribution network in their pursuit of global growth.
- Increasing infrastructure investments in many of the Company's markets will continue to drive demand for Cummins engines and power generation technology.
Linebarger told analysts that the Company's financial strength, technology leadership and global footprint will be important enablers of future success. "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 future growth. We are now performing at record levels, and while we are confident in our future, as demonstrated by our plans for growth and further improved profitability that we are sharing today, we remain vigilant in assessing near term risks and stand ready to adjust our plans should the need arise."
Cummins Inc., a global power leader, 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. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 40,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,000 dealer locations. Cummins earned $1.0 billion on sales of $13.2 billion in 2010. Press releases can be found on the Web at www.cummins.com.
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, expectations, hopes, beliefs and intentions on strategies regarding the future. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: the adoption and implementation of global emission standards; the price and availability of energy; the pace of infrastructure development; increasing global competition among our customers; general economic, business and financing conditions; governmental action; changes in our customers' business strategies; competitor pricing activity; expense volatility; labor relations; and other risks detailed from time to time in our Securities and Exchange Commission filings, including particularly in the Risk Factors section of our 2010 Annual Report on Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.
SOURCE: Cummins Inc.
Janet Williams, Director - Corporate Communications,
317-610-2488 or 812-343-6318 (mobile)