Cummins Inc. (NYSE: CMI) is on pace to report a fifth consecutive year
of record sales and profits in 2008, and is poised for significant
further growth over the next several years, Chairman and Chief Executive
Officer Tim Solso told shareholders today at the Company’s
annual meeting.
Cummins shareholders re-elected all nine Cummins directors for another
year and ratified the selection of PriceWaterhouse Coopers LLC as the
Company’s external auditing firm. Shareholders
also voted to increase the number of authorized shares of common stock
from 300 million to 500 million and defeated a shareholder proposal
calling on the Company to take steps to adhere to the conventions of the
International Labor Organization.
Speaking to shareholders from the Columbus Engine Plant, Solso recapped
Cummins’ 2007 performance and then outlined
the Company’s growth plans.
Cummins enjoyed its most profitable year ever in 2007 when it reported
net earnings of $739 million on $13.05 billion in sales. The Company’s
total shareholder return of 118 percent in 2007 placed it 10th
among the Fortune 500 companies, and its five-year average annual return
of 58 percent was ninth best.
“Cummins remains on track for further
profitable growth – this year and beyond –
despite the economic uncertainty affecting some of our U.S.
consumer-oriented markets,” Solso said. “We
have gained share in key markets in the U.S. in the past year, and our
international presence continues to strengthen.
“Our strong financial position today gives us
the flexibility to invest in the people, products, facilities and
technologies for future growth.”
Solso discussed the Company’s growth targets
for 2008: 12 percent sales growth and an Earnings Before Interest and
Taxes goal of 10 percent of sales.
