Cummins expects significant sales and profit growth this year and beyond as it takes advantage of long-term global economic trends and the recovery of key U.S. markets, chairman and CEO Tim Solso told shareholders Tuesday at the company's annual meeting.
The company expects 2011 sales to grow nearly 30 percent, from $13.2 billion in 2010 to $17 billion, and earnings before interest and taxes 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. It expects to spend as much as $650 million on capital projects to increase capacity and invest in new technologies and products. The company also expects its joint ventures to make $300 million in capital investments to expand its businesses.
"The actions we have taken over the past two years have kept Cummins strong during the recession and have set the stage for a period of sustained profitable growth," Solso said in a statement. "We have more growth opportunities ahead of us today than at any time in our history."
Separately, Cummins' board approved a quarterly common stock cash dividend of 26.25 cents a share. The dividend is payable June 1 to shareholders of record on May 20.