Cummins reported record profits for all of 2010, as well as record quarterly sales and profits for the fourth quarter.
Fourth-quarter sales were $4.14 billion, up 22 percent from $3.4 billion during the same period in 2009. Earnings before interest and taxes were $541 million, or 13.1 percent of sales, a 41 percent increase from $383 million, or 11.3 percent of sales.
For the fourth quarter, the engine, components and distribution segments reported record sales and segment earnings before interest and taxes, the company said in a statement.
For the full year, sales were $13.23 billion, up 22 percent from $10.8 billion in 2009. Earnings before interest and taxes 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, and earnings before interest and taxes 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. The power generation division also posted strong sales and profit gains from the previous year.
Sales in China and Brazil increased by more than 70 percent and sales in India rose 37 percent for the year. Cummins' total international sales increased by 48 percent from 2009 and accounted for 64 percent of the company's total sales in 2010.
"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," chairman and CEO Tim Solso said in a statement.
"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," he added.
Based on its current forecasts, Cummins expects sales to grow to $16 billion in 2011 and earnings before interest and taxes to be 13.5 percent of sales.