Cummins Reports Record Earnings for ‘05
Cummins Inc. reported record profits for 2005, including gains in the Columbus, Ind.-based company’s recreational vehicle interests.
For the year, net income increased 57% to $550 million from $350 million in 2004 while sales rose 18% to $9.92 billion from $8.44 billion.
Cummins fourth-quarter sales increased 17% to a record $2.75 billion from $2.35 billion in the same period in 2004. Net income rose 40% in the three-month period to $167 million from $119 million.
The company’s light-duty, auto and RV engine business posted sales of $326 million for the quarter, up from $279 million the previous year. For the year, the sector had sales of $1.16 billion versus $1.13 billion in 2004.
The power generation division, which includes Minneapolis, Minn.-based Onan Corp., reported fourth-quarter sales of $575 million compared with $520 in 2004 while year-end revenue increased to nearly $2 billion from $1.8 billion.
“Our results for both the fourth quarter and all of 2005 are outstanding,” said Cummins Chairman and CEO Tim Solso. “This performance is evidence that we are transforming Cummins into a less cyclical, more diversified company while converting a larger percentage of sales into profit.”