Cummins Inc. has released results for 2007, completing a year of record sales and earnings - the fourth straight year of record financial performance for the company. Cummins' sales rose 15 percent to $13.05 billion, from $11.36 billion in 2006.
Net income rose to $739 million, or $3.70 cents a share, a 3 percent increase compared to $715 million, or $3.55 a share, in 2006. Earnings Before Interest and Taxes (EBIT) of $1.23 billion, or 9.4 percent of sales, represent a 4 percent increase from 2006 when the company earned $1.18 billion, or 10.4 percent of sales.
The record results came despite the expected significant drop in the North American heavy-duty truck market as a result of emissions changes that took effect Jan. 1, 2007. Industrywide sales in that market declined nearly 50 percent in 2007, but Cummins' increased share in that market as well as strong growth across most of the rest of the company's businesses more than offset the decrease.
"2007 was an outstanding year for Cummins," said Chairman and Chief Executive Officer Tim Solso. "This record-setting performance in the face of significant challenges validates our message that Cummins truly has become a more diversified, global power leader."
Cummins' fourth quarter sales of $3.5 billion also were a quarterly best for the company, and were 16 percent higher than the same period in 2006. Net earnings for the quarter increased 5 percent to $198 million ($1 per share), from $189 million (94 cents a share) during the same period in 2006. EBIT increased 7 percent to $324 million (9.2 percent of sales), compared to $303 million, or 10 percent of sales.
The company's strong performance in the fourth quarter was led by gains in the Power Generation and Distribution segments, although all four of the company's operating segments - Engine, Power Generation, Distribution and Components - reported record sales for the fourth quarter and for all of 2007.
Net income rose to $739 million, or $3.70 cents a share, a 3 percent increase compared to $715 million, or $3.55 a share, in 2006. Earnings Before Interest and Taxes (EBIT) of $1.23 billion, or 9.4 percent of sales, represent a 4 percent increase from 2006 when the company earned $1.18 billion, or 10.4 percent of sales.
The record results came despite the expected significant drop in the North American heavy-duty truck market as a result of emissions changes that took effect Jan. 1, 2007. Industrywide sales in that market declined nearly 50 percent in 2007, but Cummins' increased share in that market as well as strong growth across most of the rest of the company's businesses more than offset the decrease.
"2007 was an outstanding year for Cummins," said Chairman and Chief Executive Officer Tim Solso. "This record-setting performance in the face of significant challenges validates our message that Cummins truly has become a more diversified, global power leader."
Cummins' fourth quarter sales of $3.5 billion also were a quarterly best for the company, and were 16 percent higher than the same period in 2006. Net earnings for the quarter increased 5 percent to $198 million ($1 per share), from $189 million (94 cents a share) during the same period in 2006. EBIT increased 7 percent to $324 million (9.2 percent of sales), compared to $303 million, or 10 percent of sales.
The company's strong performance in the fourth quarter was led by gains in the Power Generation and Distribution segments, although all four of the company's operating segments - Engine, Power Generation, Distribution and Components - reported record sales for the fourth quarter and for all of 2007.
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