COLUMBUS, Ind. — 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 Chief Executive Officer Tim Solso said Tuesday 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 Cummins expects sales to reach $12 billion in 2010, an 11 percent increase from 2009. The company also expects to invest $400 million in capital projects in 2010, mostly to support initiatives related to new products and capacity expansion.
He also outlined four long-term trends working in Cummins’ favor:
“We have a lot of trends working in our favor as we look forward and we are beginning to aggressively prepare for what we think will be a period of sustained growth,” Solso said. “I am confident that we have the plans and the people in place to take advantage of our opportunities, and will continue to deliver significant value to our shareholders in the long term.”
Cummins Inc. business units 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, Ind., Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations.
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