COLUMBUS, IN--May 8, 2012: Cummins Inc. is in a strong position to continue expanding in global markets and meet its long-term growth targets, Cummins Chairman and Chief Executive Officer Tom Linebarger told shareholders at the Company's annual meeting today.
“Our technology leadership in markets around the world enables Cummins to capitalize on the macro trends that are shaping the global economy -- stringent emission standards, rising energy prices, globalization and infrastructure growth”
Linebarger highlighted Cummins' 2011 results, including record financial performance with sales up 36 percent from 2010 to more than $18 billion, and earnings before interest and tax (EBIT) up 54 percent to $2.56 billion. Cummins' outstanding 2011 performance and the strong start to 2012 positions the Company to achieve its goal of $30 billion in sales in 2015, he said.
"Our technology leadership in markets around the world enables Cummins to capitalize on the macro trends that are shaping the global economy -- stringent emission standards, rising energy prices, globalization and infrastructure growth," Linebarger said.
The Company's profits have tripled over the past decade as investments in growth, new products and leading-edge technology have paid off, he said. Cummins' strategy to focus on five growth accelerators makes it possible to meet the challenges of the changing global economy -- adopt a growth mindset, develop from a multinational to a global company, achieve supply chain excellence, deliver Customer Support Excellence (CSE), and invest in leadership development.
"I'm proud to report a strong year in 2011 with record financial performance and I believe our future is even brighter as we capitalize on our current strengths and future opportunities," said Linebarger said. "However, I am even more proud of the hard work and commitment of the 44,000 Cummins employees who come to work each day not only making a difference here, but having a positive impact on the community as well."
Linebarger thanked Cummins employees across the world for their hard work, highlighting numerous examples of how they exemplify corporate values through both their work at Cummins as well as in the community. More than 16,000 Cummins employees spent about 130,000 hours working to better their communities, he noted.
In the business portion of the meeting, Cummins shareholders voted to elect the nine Cummins directors standing for election to the Board for another year and ratified PricewaterhouseCoopers LLC as the Company's external auditing firm for 2012.
The Board members elected today are:
- Tom Linebarger Chairman and Chief Executive Officer, Cummins Inc. (first elected to the board in 2009)
- Robert Bernhard, Vice President for Research, University of Notre Dame (2008)
- Dr. Franklin Chang-Díaz, Chairman and CEO, Ad Astra Rocket Co. (2009)
- Stephen B. Dobbs, Senior Group President, Fluor Corp. (2010)
- Robert Herdman, Managing Director, Kalorama Partners LLC (2008)
- Alexis M. Herman, Chairman and CEO, New Ventures Inc. (2001)
- William I. Miller, President of the Wallace Foundation (1989)
- Georgia R. Nelson, President and CEO, PTI Resources LLC (2004)
- Carl Ware, Retired Executive Vice President Coca-Cola Co. (2004)
Shareholders also:
- Overwhelmingly approved, on an advisory basis, the compensation for Linebarger and other the named executives as listed in Cummins' proxy statement.
- Approved an amendment to the Company's by-laws to permit shareholders who own at least 25 percent of outstanding shares of common stock to call a special shareholders' meeting.
In a separate matter, the Cummins Board today approved a quarterly common stock cash dividend of 40 cents per share. The dividend would be payable on June 1, 2012 to shareholders of record on May 18, 2012.
About Cummins
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 44,000 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 6,500 dealer locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. Press releases can be found on the Web at Cummins .
