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Cummins Filtration President Pamela Carter to Assume New Role as Leader of Cummins Distribution Business
Cummins Inc. (NYSE: CMI) announces that Pamela Carter, President – Cummins Filtration, has been promoted to the role of President – Cummins Distribution Business, effective today.
She succeeds Rich Freeland, who was named President of Cummins’ Components group following the recently announced retirement of Rick Mills. In her new role, Carter will oversee the Company’s global distribution network which is the primary path to market of Cummins products and consists of 500 distributors and more than 5,000 dealers in over 160 countries.
“We’re very excited to have someone as experienced and talented as Pamela step into the leadership role of our Distribution Business,” said Cummins President and Chief Operating Officer Joe Loughrey. “Distribution is a critical part of our strategy going forward, and we are counting on Pamela to make this business even more successful in the future.”
Carter, 58, joined Cummins in 1997 as Vice President and General Counsel, after a distinguished legal and political career that included a term as Indiana Attorney General, becoming the first elected African-American female Attorney General in U.S. history. She joined the leadership team of Cummins Filtration residing in Belgium in 2000 and assumed her current position in 2005 in Nashville, which is Cummins Filtration’s global headquarters.
Cummins Filtration is the largest and most profitable business in the Company’s Components segment and employs approximately 5600 people worldwide.
“Cummins is poised to continue its strong growth around the world, and I am honored to be given the responsibility to build on the good work Rich has done in the Distribution business,” said Carter, who will relocate to Cummins’ headquarters in Columbus, Ind. “I am proud of the work the Cummins Filtration team has done in the past several years to create a business that is a leader in nearly every market it serves, and am confident that such success will continue.”
A successor to Carter at Cummins Filtration is expected to be named in the near future.
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 serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $739 million on sales of $13.0 billion in 2007. Press releases can be found on the Web at www.cummins.com.
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 the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s 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, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
Cummins Inc.
Mark Land, 317-610-2456
Director of Public Relations
mark.d.land@cummins.com
Source: Business Wire (February 1, 2008 - 11:21 AM EST)
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Cummins Reports Fourth Consecutive Year of Record Sales and Profits
- Company Forecasts Accelerating EBIT Growth in 2008 -
Cummins Inc. (NYSE: CMI) today released results for 2007, completing a year of record sales and earnings - the fourth straight year of record financial performance for the Company. Cummins’ sales rose 15 percent to $13.05 billion, from $11.36 billion in 2006.
Net income rose to $739 million, or $3.70 cents a share, a 3 percent increase compared to $715 million, or $3.55 a share, in 2006. Earnings Before Interest and Taxes (EBIT) of $1.23 billion, or 9.4 percent of sales, represent a 4 percent increase from 2006 when the Company earned $1.18 billion, or 10.4 percent of sales.
The record results came despite the expected significant drop in the North American heavy-duty truck market as a result of emissions changes that took effect Jan. 1, 2007. Industry-wide sales in that market declined nearly 50 percent in 2007, but Cummins’ increased share in that market as well as strong growth across most of the rest of the Company’s businesses and regions more than offset the decrease.
“2007 was an outstanding year for Cummins,” said Chairman and Chief Executive Officer Tim Solso. “This record-setting performance in the face of significant challenges validates our message that Cummins truly has become a more diversified, global power leader. Most importantly, our efforts continue to benefit our shareholders, who have enjoyed an average annual return of over 55 percent on their investment over the past five years.”
Cummins’ fourth quarter sales of $3.5 billion also were a quarterly best for the Company, and were 16 percent higher than the same period in 2006. Net earnings for the quarter increased 5 percent to $198 million ($1.00 per share), from $189 million (94 cents a share) during the same period in 2006. EBIT increased 7 percent to $324 million (9.2 percent of sales), compared to $303 million, or 10 percent of sales.
The Company’s strong performance in the fourth quarter was led by gains in the Power Generation and Distribution segments, although all four of the Company’s operating segments – Engine, Power Generation, Distribution and Components – reported record sales for the fourth quarter and for all of 2007.
Global Power Generation sales increased 28 percent in the fourth quarter to $840 million, while Segment EBIT of $86 million was 39 percent higher than the same period in 2006. Strong gains around most of the world in commercial generator sales and significant growth in alternator sales in Europe and China were key drivers for the segment in the fourth quarter.
The Company’s Distribution segment reported sales of $468 million in the fourth quarter, a 21 percent improvement from the same period in 2006. Record Segment EBIT of $56 million was 44 percent higher than during the fourth quarter of 2006.
Sales and Segment EBIT also improved in the Components segment, despite some operational issues associated with rapid growth that affected profitability in two of the segment’s businesses – Emission Solutions and Turbo Technologies. The Company is aggressively managing these issues, and expects improved profit performance from both businesses in 2008.
Still, Components sales in the fourth quarter rose 30 percent from the same period in 2006 to $777 million, while Segment EBIT more than doubled to $47 million in the quarter.
Although revenues were higher in the Engine segment, profits were lower for both the fourth quarter and the full year due to costs associated with the release of new products in North America to meet the 2007 EPA emissions regulations.
The engine business also invested heavily around the globe for capacity expansion and new products. Notable investments include the light duty diesel engine program in Columbus, Indiana, and the two light commercial vehicle engine platforms for the Chinese truck market. These two new platforms for this rapidly growing 1.1 million unit market in China will be manufactured as part of our joint venture partnership with Foton.
At the same time, Cummins also gained significant share in key engine markets during 2007 – especially in the North American heavy-duty truck engine market, where the Company’s market share exceeded 40 percent for the last nine months of the year. The Company’s 2007 product, which is based on Cummins’ proven cooled Exhaust Gas Recirculation technology, has performed as well as expected and has been well-received by customers.
In the fourth quarter, the Company received significant recognition from two leading industry organizations: J.D. Power and Associates awarded Cummins one of its prestigious customer satisfaction awards for the performance and cost of ownership of the Company’s new heavy-duty truck engine. Diesel Progress magazine named Cummins its “Newsmaker of the Year” for 2007, primarily for work around meeting the 2007 EPA emissions standards.
2008 outlook
The Company expects to extend its record financial performance to a fifth straight year in 2008. Sales are forecast to increase 12 percent from 2007 levels and the Company expects to generate EBIT of 10 percent of sales in 2008.
The Company’s financial performance over the last four years has resulted in a strong balance sheet, which has given Cummins the flexibility to invest in the people, products, facilities and technologies necessary to take advantage of growth opportunities around the world. Cummins expects to spend between $550 million and $600 million on capital projects in 2008.
The Company expects the North American truck engine markets to rebound somewhat from 2007, despite the uncertainty that exists in the U.S. economy. Additionally, Cummins expects to maintain its market share gains from 2007 in key segments such as heavy-duty and medium-duty truck and bus.
The Distribution segment continues to grow to provide support for the increasing number of Cummins’ products around the globe. The Company’s Power Generation business is forecast to remain extremely strong in 2008, with demand being driven by global infrastructure needs, while the Components segment is forecasting improved profit performance – especially in its two fastest-growing businesses, Turbo Technologies and Emission Solutions.
“We are extremely pleased with our 2007 performance and are excited about the prospects for 2008,” Solso said. “All the pieces are in place for Cummins to take advantage of the many profitable growth opportunities in front of us - now and in the years to come.”
Fourth quarter 2007 details
Engine segment
Sales of $2.16 billion were a quarterly record and 10 percent higher than $1.95 billion during the same period in 2006. Segment EBIT decreased 34 percent to $120 million, or 5.6 percent of sales, from $181 million, or 9.3 percent of sales, a year ago.
North American heavy-duty truck engine shipments fell 38 percent, while light-duty automotive shipments decreased 47 percent due to softness in the heavy-duty pickup truck market during the quarter. However, global medium-duty truck engine shipments increased 21 percent, led by strong growth in Latin America, and construction market shipments rose 17 percent compared to the same period in 2006.
Power Generation segment
Segment sales of $840 million rose 28 percent from $658 million. Segment EBIT increased 39 percent to $86 million, or 10.2 percent of sales, from $62 million or 9.4 percent of sales. The segment saw strong sales gains in virtually every line of business, led by a 31 percent increase in commercial sales and a 34 percent rise in alternator sales.
Distribution segment
Segment sales of $468 million rose 21 percent from $386 million in the same period in 2006. Segment EBIT increased 44 percent to $56 million, or 12.0 percent of sales, from $39 million, or 10.1 percent of sales in 2006. Sales of engines and power generation products were sharply higher – especially in Europe, the Middle East and Africa – and the segment reported record earnings from its joint ventures.
Components segment
Sales in the segment – which consists of the Company’s filtration, turbocharger, exhaust aftertreatment and fuel systems businesses – rose 30 percent to $777 million, from $599 million for the same period in 2006. Segment EBIT rose 104 percent to $47 million, or 6.0 percent of sales, from $23 million, or 3.8 percent of sales, in the fourth quarter of 2006.
The segment’s performance was led by the Filtration business, which reported improved sales and stronger return on sales. The Company’s turbocharger and Emission Solutions businesses continued to experience significant sales growth for their products, but their profitability was adversely affected by costs and operational issues related to meeting that demand.
Presentation of Non-GAAP Financial Information
EBIT is a non-GAAP measure used in this release. Each is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBIT is a measure used internally to assess the performance of the operating units.
Webcast information Cummins management will host a teleconference to discuss these results today at 10 a.m. EST. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.
Forward-looking statements disclosure
Information provided in this release and on the webcast that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s 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, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
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 serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $739 million on sales of $13.0 billion in 2007. Press releases can be found on the Web at www.cummins.com.
Cummins Filtration Enhances Capabilities Through Agreement with Elmarco, a Nanofiber Technology Company
Cummins Filtration (NYSE:CMI), the leader in filtration, exhaust, coolant and chemical technology for all engine-powered systems, announced that it has entered into a cooperation agreement with Elmarco s.r.o, a Czech nanotechnology designer. The strategic objective of the agreement is to develop innovative solutions in nanofiber media technologies to allow Cummins Filtration to better serve global application needs in motor vehicle and related filtration systems.
Pamela Carter, President of Cummins Filtration, stated, “We are very excited and pleased to launch this cooperation with Elmarco because it allows us to bring innovative products more quickly to market. This agreement ensures that Cummins Filtration is well-positioned to exceed our customers’ requirements and establish a global leadership position in motor vehicle filtration.”
Ladislav Mares, Elmarco’s CEO, added, “We are delighted to be able to combine our advanced NanospiderTM technology and know-how with Cummins Filtration’s expertise and market leadership.”
Elmarco, in close cooperation with the Technical University of Liberec - Czech Republic, has developed the exclusive NanospiderTM technology. Their patented NanospiderTM technology is capable of producing a consistent web of nanofibers with diameters 50-300 nanometers, approximately 1,000 times smaller than a human hair. The extremely fine fibers provide enormously high surface area, approximately 150 times greater than that of commonly used spun-bond (or cellulose) fibers. Filter media with this increased surface area collect a significantly greater number of particulates, which results in superior filter efficiency.
“The capability for high particle removal in motor vehicle filtration is a critical factor to protect the environment and to increase motor vehicle durability,” Carter explained. “The use of such advanced technology, in conjunction with Cummins’ patented reduced-volume filter designs, enables the production of smaller, more efficient filters with greater design flexibility.”
Mares explained that nanofibers can be applied onto a substrate of cellulose or other material and can be combined in multiple layers of varying fiber diameters. Motor vehicle nanofiber filtration focuses on continuous fibers with diameters in the range of 100 - 500 nanometers that are applied to a pleatable substrate. Such advanced multi-layer nanofiber filter media can deliver high filter efficiency at low initial pressure drop, or high permeability, which offers superior benefits to the motor vehicle end-user customer.
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 serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $715 million on sales of $11.4 billion in 2006. Press releases can be found on the Web at www.cummins.com. Press releases can be found on the Web at www.cummins.com.
About Cummins Filtration
Cummins Filtration Inc. is a wholly owned business unit of Cummins Inc. and the world's leading designer and manufacturer of air, fuel, hydraulic and lube filtration, chemicals and exhaust system technology products for all engine-powered equipment. Cummins Filtration cares about maintaining a cleaner, healthier, and safer environment. Going beyond compliance, Cummins Filtration proactively seeks improvements to products and processes and offers environmentally friendlier product choices for all major engine systems. The company's homepage can be found at cumminsfiltration.com. In North America, customers can call Cummins Filtration Customer Assistance at 1-800-22FILTER (1-800-223-4583) for more information.
About Elmarco
Elmarco s.r.o. (www.elmarco.com) is a dynamic R&D-focused manufacturing company of customized nanofiber technology solutions for the medical, energy, hygiene, and industrial filtration markets. Established in 2000, their current annual turnover is approximately $ US 23.3 MM. The recipient of multiple national and international Design and Innovation awards, Elmarco was named one of the “Best Czech 100” companies for the last three years and won the Design Managerial Deed Prize in 2007. Elmarco’s award-winning material, Nanospider AntimicrobeWeb™, has been recognized at the NASA Tech Briefs National Nano Engineering Conference in Boston in the competition of Nanotech Briefs, Nano'50. The success of Elmarco is also supported by its strategic partnership with prestigious universities, e.g. Massachusetts Institute of Technology (MIT) and North Carolina State University (NCSU). This nanofiber technology company is headquartered in Liberec, Czech Republic.
Cummins Filtration
Diane Coleman, 615-366-9744
Director - Global eMarketing and Communications
diane.coleman@cummins.com
Source: Business Wire (January 28, 2008 - 12:16 PM EST)
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Cummins to Expand Presence in Downtown Columbus by 500 Workers
- Company to Lease Office Space as Part of Commons Mall Redevelopment Project -
Cummins Inc. (NYSE: CMI) today announced that it will add approximately 500 professional employees, many of them engineers, in Columbus over the next two years, and has agreed to lease an office building being built as part of the Commons Mall redevelopment project to meet the expected growth.
The four-story, 100,000 square foot building is scheduled to be completed late in the first quarter of 2009. The project also includes a parking garage for Cummins employees to be built on property just southwest of the office building.
“We are pleased to be able to further strengthen our commitment to Columbus and the state of Indiana by bringing new, well-paying jobs to the region,” said Cummins President and Chief Operating Officer Joe Loughrey. “As a large and growing employer in the city, we have a significant stake in helping Columbus remain a vibrant community. This project, along with the other initiatives outlined as part of the city’s Vision 2020 plan, is a big step in that direction.”
The announcement was made this afternoon at Columbus City Hall. In addition to Loughrey, Indiana Lt. Gov. Becky Skillman, Columbus Mayor Fred Armstrong, project developer Tim Dora, representatives of the City of Lawrenceburg Regional Economic Development Fund and members of the staffs of U.S. Representatives Baron Hill and Mike Pence were among those in attendance.
“Last year 600 new production jobs, this year 500 new professional jobs. We’re proud of Cummins and the growth the company is bringing to south central Indiana,” said Governor Mitch Daniels.
Cummins currently has approximately 5,500 employees in Columbus, along with an additional 900 contract workers. The new space, two blocks from the Company’s headquarters, will allow Cummins to consolidate its employees in fewer locations in the city and make room for new workers expected as part of Cummins’ growth plans.
The office space is part of a larger redevelopment project on the site of the Commons Mall by Dora Brothers Hospitality Corp. When complete, the project - which will result in demolition of much of the mall - also will include a new hotel, conference center and additional retail locations. Dora Brothers is nearing completion on another hotel in downtown Columbus - Hotel Indigo.
“Today’s exciting announcement is another example of the revitalization of downtown Columbus and the success of our Vision 2020 plan,” said Columbus Mayor Fred Armstrong. “Cummins continues to be a major driver of our success as a community, and we are thrilled with the Company’s latest commitment to the city.”
The ability to provide sufficient parking for Cummins employees was a significant factor in the Company’s decision to locate the office building in downtown Columbus. The garage is expected to cost approximately $8 million, with the city of Columbus paying $4 million of the cost and the City of Lawrenceburg Regional Economic Development Fund providing a $3 million grant for the project.
“The City of Lawrenceburg and our Regional Economic Development Grant Committee is pleased to be able to assist our regional neighbors in expanding the commercial and industrial environment here in Columbus,” said Lawrenceburg Mayor William Cunningham. “It is our hope that with investments such as ours, Indiana will maintain, and improve, its reputation as a Midwestern economic powerhouse.”
At the request of Cummins, the Indiana Economic Development Corporation agreed to provide the City of Columbus a $1 million grant to assist in the cost of the infrastructure improvements associated with the new project.
Today’s announcement builds on Cummins’ recent growth in the Columbus area, including the decision to locate the Company’s new light-duty diesel program at the Columbus Engine Plant. That program is expected to result in at least 600 new jobs by the end of the decade.
“Cummins is such an integral part of the Columbus community,” said Rep. Hill. “And, these new jobs will further enrich this community from all aspects. I am very pleased with Cummins’ efforts to continue bringing high-quality jobs to the region.”
“For generations, for thousands of Hoosier families Cummins is Columbus,” added Rep. Pence. “Today’s announcement shows yet again that Cummins believes in this community and this state. The Cummins brand is all about dependability, hard work and integrity—all values that are synonymous with the Columbus community.”
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 serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $715 million on sales of $11.4 billion in 2006. Press releases can be found on the Web at www.cummins.com.
Information provided in this release that is not purely historical constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s 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, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
Cummins Inc.
Mark Land, Director of Public Relations, 317-903-6999
mark.d.land@cummins.com
Source: Business Wire (January 23, 2008 - 3:31 PM EST)
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CMI is still piling it on. Very good company.
CMI is a monster! Very nice option play with this one.
CMI has been rocking!
Will be interesting next week to see how it trades post split. I believe he may be right. lol
More specifically, New emission standard engines. In between the circus horns and his zoo act, I thought he was yelling for CMI to triple…
CMI chart
from IHUB
Cramer is jumping up and down about this 1....
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