By Tess Stynes
Cummins Inc. (CMI) appointed the president of its engines
business, Rich Freeland, as its chief operating officer, and the
company also unveiled a 25% dividend increase and the buyback of as
much as an additional $1 billion of its stock.
In his new role, Mr. Freeland will focus on the heavy-duty
engine and power equipment maker's daily operations and report to
Tom Linebarger, who will remain chairman and chief executive.
A representative from Cummins wasn't immediately available to
comment on whether the appointment is part of a succession planning
process.
"As someone who has been with Cummins since 1979, and has
successfully led three of our four business units over the years,
Rich knows what it takes to be dependable every time for our
customers across the globe," Mr. Linebarger said in a
statement.
Mr. Freeland has been president of Cummins engine business, its
largest business unit, since 2010. During his tenure in that post,
revenue grew to more than $10 billion last year, from $6.4 billion
in 2010, according to the company.
Mr. Freeland will be succeeded by Dave Crompton, a longtime
company veteran who most recently led the heavy duty midrange and
light duty segment of the engine business.
Cummins's board raised the quarterly dividend to 78 cents a
share, up 15.5 cents a share.
The latest stock buyback authorization takes effect when a
previous $1 billion share repurchase program is completed.
Write to Tess Stynes at tess.stynes@wsj.com
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