Cummins Inc. expects significant sales and profit growth in 2011 and beyond as it takes advantage of a number of long-term global economic trends and the recovery of key U.S. markets, Chairman and Chief Executive Officer Tim Solso told shareholders at the Company’s annual meeting.
The Company expects 2011 sales to grow by nearly 30 percent from $13.2 billion in 2010 to $17 billion and Earnings Before Interest and Taxes (EBIT) to be 14 percent of sales this year – both Company records – Solso said. Cummins earned a record EBIT of $1.7 billion on sales of $13.2 billion in 2010.
The Company also will significantly increase its investment in the business this year, expecting to spend as much as $650 million on capital projects to increase capacity and invest in new technologies and products for the future. In addition, the Company expects its joint ventures to make $300 million in capital investments to expand their businesses.
Solso recapped the Company’s successful year in 2010, which included strong growth across all of the Company’s business segments and in large international markets such as China, India and Brazil. Cummins’ record profitability in 2010 came despite weak commercial truck markets in the U.S., which are expected to recover significantly in 2011 and grow further in 2012 and 2013.