Three out of Cummins’ four business segments reported full-year record earnings. The three segments were Engine, Components and Distribution. Alongside these, Power Generation also shone with strong sales posting profit gains from 2009.
The Company’s strong performance is remarkable despite a significant decline in the North American truck engine market, regarded as an important sector for the business. The decline was largely attributed to the continuous weakening of the U.S. economy, as well as changes in emission standards.
These declines were, however, sufficiently offset by significant growths in the international markets, particularly China, India and Brazil.
“2010 was the best year in the Company’s history,” said Chairman and Chief Executive Officer Tim Solso. “The fact that we were able to achieve record profitability in the face of a sharp decline in large North American on-highway markets speaks to the global strength of our business and the work we did to keep the Company strong during the recession.”
Based on current forecasts, Cummins will expect to grow sales to $16 billion in 2011, and EBIT (Earnings Before Interests & taxes) at 13.5 percent of sales.
Looking at an expected economic recovery in North America, the Company forecasts further strong growth in China, India and Brazil, as well as in other parts of the world, including Mexico, the Middle East and Europe.