During Cummins Inc.'s meeting with analysts Tuesday, the manufacturer gave a positive company outlook to 130 Wall Street analysts and shareholders, including expectations to break previous peak sales and earnings, set in 2008, in 2012.
The company also told analysts to gear up for a significant period of growth in 2011.
Cummins also set a target of $20 billion sales with earnings before interest and taxes of 12.5 percent of sales in 2014.
"We still have some challenges ahead of us, especially in the first half of this year, but I am extremely optimistic about the future," said Tim Solso, CEO. "We also are committed to investing in the business so that we can take advantage of several promising long-term trends that we expect to drive profitable growth for Cummins well into the future."
According to Cummins, the company is well-positioned to take advantage of the tightening diesel engine emissions standards and fuel economy regulations. The company believes the rising price of energy will further increase demand for fuel-efficient diesel engines, and that increasing economic globalization will continue to benefit the company. Another trend the company plans to capitalize on is increased infrastructure investment in many developing countries, spurred by government stimulus spending. Cummins says this will bolster engine and power generation demand in many of the company's markets.
The company also told analysts to gear up for a significant period of growth in 2011.
Cummins also set a target of $20 billion sales with earnings before interest and taxes of 12.5 percent of sales in 2014.
"We still have some challenges ahead of us, especially in the first half of this year, but I am extremely optimistic about the future," said Tim Solso, CEO. "We also are committed to investing in the business so that we can take advantage of several promising long-term trends that we expect to drive profitable growth for Cummins well into the future."
According to Cummins, the company is well-positioned to take advantage of the tightening diesel engine emissions standards and fuel economy regulations. The company believes the rising price of energy will further increase demand for fuel-efficient diesel engines, and that increasing economic globalization will continue to benefit the company. Another trend the company plans to capitalize on is increased infrastructure investment in many developing countries, spurred by government stimulus spending. Cummins says this will bolster engine and power generation demand in many of the company's markets.
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