June 2008 -- Cummins Inc. documents 2007 as an outstanding year with record setting performance.
Sales exceeded $13 billion -- a 15% increase over 2006, reported Tim Solso, chairman and CEO.
Earnings before interest and taxes were $1.2 billion -- or 9.4% of sales. Net earnings were $739
million, compared with $715 million for the previous year.
"This fourth straight year of record sales and profits reinforces our value promise to
shareholders. As of the end of 2007, Cummins' investors have enjoyed a five-year average annual
total return of 58%," said Solso in a company statement. "Along with this outstanding
performance, we have increased our dividends by 67% and have purchased almost $500 million in
stock over the last two years. In December, we announced plans to buy back another $500 million
worth of shares. We also executed a pair of two-for-one stock splits, one during 2007 and
another in early 2008."
Solso said the success in 2007 was driven by increased sales in all business segments. "Power
Generation, Distribution and Engine once again delivered excellent results. They had record
revenues, increased share in many of their markets and offered innovative products and services,
which delighted Cummins' customers and the world."
