NEW YORK — Cummins Inc. is well positioned to take advantage of a number of long-term economic and market trends and is optimistic about its prospects for sustained profitable growth, members of senior leadership told investment analysts Tuesday.
Executives, including Chairman and CEO Tim Solso; President and Chief Operating Officer Tom Linebarger; Chief Financial Officer Pat Ward and Chief Technical Officer John Wall spoke during a meeting at the New York Stock Exchange.
The executives set a sales target of $20 billion for 2014. Cummins also said it expects to surpass its previous peak sales and earnings, set in 2008, in 2012.
“We still have some challenges ahead of us, especially in the first half of this year, but I am extremely optimistic about the future,” Solso said. “We are in the best financial condition in the company’s history and have an experienced leadership team that knows what it takes to successfully manage the Company during both difficult times and times of significant growth.
“We also are committed to investing in the business so that we can take advantage of several promising long-term trends that we expect to drive profitable growth for Cummins well into the future.”
Those trends, according to the company, include:
• Rapidly tightening diesel engine emissions standards around the world and emerging regulation of commercial vehicle fuel economy that will allow Cummins to leverage its position as a technical leader in emissions reduction and fuel efficiency, resulting in increased engine and components sales.
• Increasing economic globalization will continue to benefit Cummins due to the Company’s competitive position in large and growing international markets such as China, India and Brazil and its worldwide distribution network.
• Increased infrastructure investment in many developing countries, spurred by government stimulus spending, will bolster engine and power generation demand in many of Cummins’ markets.
“We have managed the company very conservatively during the downturn, and as a result have lived up to our commitment to shareholders to produce a solid profit and generate significant cash in an extremely weak economic environment,” Linebarger said. “That work will allow us to emerge from the recession an even stronger company and one that is poised for growth.”
Cummins Inc.’s 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. The company reported net income attributable to Cummins Inc. of $428 million on sales of $10.8 billion in 2009.
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