Record sales and earnings in 2007 for Cummins

Cummins completed a year of record sales and earnings in 2007 - 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. Industry-wide 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 and regions 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. Most importantly, our efforts continue to benefit our shareholders, who have enjoyed an average annual return of over 55 percent on their investment over the past five years.”

Cummins plant in Darlington played an important part in this success. 2007 saw record engine production of 79,314 engines, which was 36% higher than 2006. Shipments, which also include imported heavy-duty engines were also a record, increasing 32% from 2006 to 82,175 units. Exports to Europe and Asia increased, and now represent over 60% of production. 17,000 of these engines were exported to China for 2007. Plant employment levels increased substantially from 760 at the end of 2006 to 1000 at the end of 2007.

Darlington Plant Manager, Tim Millwood said, "It has been an amazing year for the plant in 2007, and significant effort has been made by our employees to reach these record levels. It is important to mark this success, but we cannot relax. We must continue to improve to remain competitive and meet the ever increasing cost and delivery expectations of our customers around the world."