Cummins reported record sales, profits and cash flow from operations for all of 2011 as well as strong results for the fourth quarter.


"Cummins had its best year ever in 2011, despite economic uncertainty in a number of regions," says Tom Linebarger, chairman and CEO. "We continue to benefit from our leading position in a number of end markets and geographies. Revenue in the United States grew 53%, and international revenue grew 27% year-over-year."

Fourth quarter revenue of $4.9 billion increased 19% from the same quarter in 2010 and set a new quarterly record for the company. The increase year-over-year was driven by higher demand in truck, construction, power generation and oil and gas markets in North America. The company also experienced strong growth in global mining markets. Growth in these markets offset weaker demand in the construction market in China and power generation in India.

Net income in the fourth quarter was $548 million ($2.86 per diluted share). The company reported net income of $491 million ($2.56 per diluted share) with a tax rate of 22.8% for the quarter.

Earnings before interest and taxes was $768 million for the fourth quarter. Excluding the special items noted above, EBIT was $677 million or 13.8% of sales. This represents a 25% growth in earnings year-over-year.

Revenue for the full year was $18 billion, up 36% from 2010, with strong growth in most geographic regions. Cash flow from operations more than doubled to $2.1 billion.

Based on the current forecast, Cummins anticipates that total company revenues will increase 10% in 2012, with EBIT in the range of 14.5% to 15% of sales.

"Our 2011 results and our forecast for 2012 reaffirms our confidence in reaching our goal of achieving $30 billion in sales and 18% EBIT in 2015," Linebarger says.