Cummins Announces $500 Million Accelerated Share Repurchase
February 09 2016 - 7:34AM
Cummins Inc. (NYSE: CMI) today announced that it has entered into
an accelerated share repurchase (ASR) agreement with Goldman, Sachs
& Co. (GS &Co.) to repurchase $500 million of Cummins'
common stock. Today's ASR is part of Cummins' previously announced
share repurchase plans authorized by the Board of Directors.
Under the terms of the ASR agreement, Cummins will repurchase
$500 million of its common stock from GS &Co. with an initial
delivery of approximately 4 million shares based on current market
prices. The final number of shares to be repurchased will be based
on Cummins' volume-weighted average stock price during the term of
the transaction, less a discount. The ASR is expected to be
completed by the end of the second quarter of 2016.
"This $500 million ASR agreement reflects our view that the
Company's shares are currently trading well below intrinsic value,
and is consistent with our plans to return 75 percent of Operating
Cash Flow to shareholders in 2016," said Chairman and CEO Tom
Linebarger.
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. 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 athttp://www.sec.gov or at
http://www.cummins.com in the Investor Relations section of our
website
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 55,000 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 $1.4 billion on sales of $19.1 billion in 2015.
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.
CONTACT: Jon Mills
Director, External Communications
Cummins Inc.
317-658-4540
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