Engine Supplier Announces Healthy Profits
Cummins Inc., Columbus, Ind., which supplies engines for industrial lifting equipment, has reported record profits for 2010, on the strength of significant growth in key international markets and improved productivity in its global manufacturing operations.
"The fact that we were able to achieve record profitability in the face of a sharp decline in large North American on-highway markets speaks to the global strength of our business and the work we did to keep the company strong during the recession," said Tim Solso, chairman and CEO of Cummins.
Fourth quarter sales were $4.14 billion, up 22 percent from $3.40 billion during the same period in 2009. Earnings before interest and taxes (EBIT) were $541 million, or 13.1 percent of sales, a 41 percent increase from $383 million, or 11.3 percent of sales.
Net income attributable to Cummins Inc. was $362 million ($1.84 per share) compared to $270 million ($1.36 per share) in the fourth quarter 2009.
For the full year, sales were $13.23 billion, up 22 percent from $10.80 billion in 2009. EBIT of $1.66 billion, or 12.5 percent of sales, increased 114 percent from $774 million, or 7.2 percent of sales excluding restructuring and other charges, in 2009.
Full-year 2010 sales were second only to 2008, while EBIT and net income attributable to Cummins Inc. were company records. Three of the company’s four business segments—Engine, Components and Distribution—reported full-year record earnings, while Power Generation also posted strong sales and profit gains from the previous year.
"Given our strong balance sheet, the expected recovery of our North American markets and the global growth opportunities in front of us, we are forecasting further significant growth in 2011 and beyond," added Tim Solso.