Cummins Hitting on All Cylinders; Reports Record 2011

Feb. 2, 2012
The company is on track to meet its goal of $30 billion in annual sales by 2015.

Engine manufacturer Cummins Inc. reported record revenue, profit and cash flow from operations in 2011, driven by a 53% jump in U.S. sales.

Columbus, Ind.-based Cummins reported full-year revenue of $18 billion, up 36% from 2010.

Excluding the benefits of a flood-insurance settlement and divestiture of two of its businesses, Cummins reported full-year net income of $1.75 billion, or $9.07 per diluted share.

Meanwhile, cash flow from operations more than doubled to $2.1 billion.

"Cummins had its best year ever in 2011, despite economic uncertainty in a number of regions," Chairman and CEO Tom Linebarger said. "We continue to benefit from our leading position in a number of end markets and geographies."

Sales in North America, Brazil, China, India and other markets hit all-time highs in 2011, Linebarger added.

The company's U.S. revenue grew 53%, while international revenue grew 27%.

In the fourth quarter, Cummins reported record revenue of $4.9 billion, up 19% year-over-year.

"The increase year-over-year was driven by higher demand in truck, construction, power-generation and oil and gas markets in North America," Cummins noted in a press release. "The company also experienced strong growth in global mining markets.

"Growth in these markets offset weaker demand in the construction market in China and power generation in India."

Based on the current forecast, Cummins anticipates that total company revenue will increase by 10% in 2012, with EBIT in the range of 14.5% to 15% of sales.

"Our 2011 results and our forecast for 2012 reaffirms our confidence in reaching our goal of achieving $30 billion in sales and 18% EBIT in 2015," Linebarger said.

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