Cummins discusses plans to drive shareholder value at meeting with investment community
November 10 2015 - 12:03PM
At a meeting with analysts and shareholders today, members of the
senior leadership team of Cummins Inc. (NYSE: CMI), a global power
leader, shared their plans to generate profitable growth and strong
returns on capital to drive shareholder value. In addition, the
Board of Directors of Cummins approved a new $1 billion share
repurchase program, effective today, to commence upon the
completion of the existing $1 billion share repurchase program,
which was approved in July 2014. The approval of the new share
repurchase program is consistent with the Company's plans to return
50 percent of Operating Cash Flow to shareholders. At the meeting,
Cummins Chairman and Chief Executive Officer Tom Linebarger,
President and Chief Operating Officer Rich Freeland and Chief
Financial Officer Pat Ward discussed plans to reduce costs and
drive operational improvements as challenging conditions in a
number of important markets are expected to reduce Cummins' 2016
revenues by at least five percent from 2015. The Company also
intends to make disciplined investments in organic growth
opportunities, partnerships and acquisitions to continue its strong
track record of delivering high returns. "By making good
strategic choices, adjusting our cost structure quickly and
operating our business well during periods of weak demand, we will
position Cummins for stronger performance when markets improve, as
we have demonstrated in prior cycles," said Tom Linebarger,
Chairman and CEO. "We will add adjacent growth platforms through
the successful launch of new products, by leveraging existing
partnerships and pursuing acquisitions that offer high return on
capital." Webcast information
A copy of the presentation used in the meeting and a replay of
the webcast is available at investor.cummins.com. About
Cummins
Cummins Inc., a global power leader, is a corporation of
complementary business units that design, manufacture, distribute
and service diesel and natural gas engines and related
technologies, including fuel systems, controls, air handling,
filtration, emission solutions and electrical power generation
systems. Headquartered in Columbus, Indiana, (USA) Cummins
currently employs approximately 54,600 people worldwide and serves
customers in approximately 190 countries and territories through a
network of approximately 600 company-owned and independent
distributor locations and approximately 7,200 dealer locations.
Cummins earned $1.65 billion on sales of $19.2 billion in 2014.
Press releases can be found on the Web at www.cummins.com. Follow
Cummins on Twitter at www.twittter.com/cummins and on YouTube at
www.youtube.com/cumminsinc. Forward-looking disclosure
statement
Information provided in this release that is not purely
historical are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding our forecasts, guidance, preliminary results,
expectations, hopes, beliefs and intentions on strategies regarding
the future. These forward looking statements include, without
limitation, statements relating to our plans and expectations for
our revenues for the full year of 2015. Our actual future
results could differ materially from those projected in such
forward-looking statements because of a number of factors,
including, but not limited to: the adoption and implementation of
global emission standards; the price and availability of energy;
the pace of infrastructure development; increasing global
competition among our customers; general economic, business and
financing conditions; governmental actions; changes in our
customers' business strategies; competitor pricing activity;
expense volatility; labor relations; and other risks detailed from
time to time in our Securities and Exchange Commission filings,
including particularly in the Risk Factors section of our 2014
Annual Report on Form 10-K. Shareholders, potential investors
and other readers are urged to consider these factors carefully in
evaluating the forward-looking statements and are cautioned not to
place undue reliance on such forward-looking statements. The
forward-looking statements made herein are made only as of the date
of this press release and we undertake no obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events or otherwise. More detailed
information about factors that may affect our performance may be
found in our filings with the Securities and Exchange Commission,
which are available at http://www.sec.gov or at
http://www.cummins.com in the Investor Relations section of our
website. Presentation of Non-GAAP Financial Information
EBIT is a non-GAAP measure used in this release, and is defined
and reconciled to what management believes to be the most
comparable GAAP measure in a schedule attached to this release.
Cummins presents this information as it believes it is useful to
understanding the Company's operating performance, and because EBIT
is a measure used internally to assess the performance of the
operating units.
CONTACT: Jon Mills
Director, External Communications
(317) 658-4540
Jon.mills@cummins.com
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