- Launching New Power business which includes existing electrification business as well as fuel cell and hydrogen production technologies
- Company shares plans to effectively manage through cyclical downturn by lowering structural costs by $250 million to $300 million in 2020
- Cummins has the financial strength to invest through the cycle and return cash to shareholder
COLUMBUS, Ind.–At a meeting with analysts and shareholders today, members of the leadership team of Cummins Inc. (NYSE: CMI), a global power leader, shared the Company’s plans to generate profitable growth driven by leadership in the design, manufacture, and support of powertrain technology.
“Our leadership in powertrain technology has been instrumental in driving strong returns for Cummins shareholders,” Tom Linebarger, Chairman, and CEO, said at the meeting. “Cummins has continued to advance its diesel and natural gas powertrains while we have increased our focus on battery and fuel cell technologies, providing customers with the products and support for all of their powertrain needs.”
The Company shared its plans to leverage its customer relationships and application knowledge to support OEMs and end-users as they broaden the number of powertrains in their vehicles and equipment. In his remarks, President and COO Tony Satterthwaite reiterated that while battery and fuel cell technologies have been a clear focus of Cummins, its investments in diesel and natural gas platforms would continue in order to achieve improved fuel economy and lower emissions.
“While we do anticipate a shift towards electrification in some markets over the coming years, diesel will be the primary source of energy in commercial vehicles for many years to come,” Mr. Satterthwaite said. “Cummins will continue to lead the way in developing cleaner and more fuel-efficient diesel engines, such as the recently announced and industry-leading 2020 ISX15 Efficiency Series, for the North American heavy-duty truck market, which is 5% more fuel-efficient than its 2019 counterpart.”
At the meeting, Chief Financial Officer Mark Smith reminded investors that Cummins has a strong track record of improving cycle-over-cycle profitability and cash flow and that the Company is prepared for a cyclical slowdown in 2020. “Cummins has the financial strength to keep investing through the cycle and return cash to shareholders”, Mr. Smith stated. “We are taking steps to lower our cost base while continuing to invest in the new products and services that will position the Company for a stronger future, when markets recover.”
A copy of the presentation used in the meeting and a replay of the webcast is available at investor.cummins.com.
Cummins Inc., a global technology leader, is a corporation of complementary business segments designing, manufacturing, distributing and servicing a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including transmissions, battery systems, fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 62,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations, and over 7,600 dealer locations. In 2018, the company earned about $2.1 billion on sales of $23.8 billion. See how Cummins is powering a world that’s Always On by accessing news releases and more information at https://www.cummins.com/always-on. Follow Cummins on Twitter at www.twitter.com/cummins and on YouTube at www.youtube.com/cumminsinc.