By Cassandra Jaramillo
Engine manufacturer Cummins Inc. said Tuesday its board of
directors approved a move to boost its quarterly dividend by
25%.
Cummins raised its quarterly dividend to 97.5 cents from 78
cents. The dividend is payable on Sept. 1 to shareholders.
The dividend boost "reflects our confidence in our performance
over the long term," Chief Executive Tom Linebarger said in a news
release.
The Columbus, Ind.-based company has posted strong results
recently--for its first quarter, it said revenue rose 7%, helped by
a strong revenue increase in North America amid continued strong
demand for commercial truck engines.
Cummins has said it expects revenue growth in 2015 of 2% to 4%
over 2014. The company projected its margin for the year to be in a
range of 13.5% to 14% of sales, implying per-share earnings of
$9.80 to $10.40.
Shares of Cummins, down 10% this year so far, rose 0.8% in
after-hours trading.
Write to Cassandra Jaramillo at Cassandra.Jaramillo@wsj.com
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