Cummins Inc. was recognized by Chrysler Group as one of the 2013 Suppliers of the Year during the company’s 2014 Annual Strategy Meeting and Supplier Awards Ceremony on June 24 held at the Palace of Auburn Hills in Auburn Hills, Mich.
According to a press release, of the 18 awards given to top suppliers for their “extraordinary performance” in 2013, Cummins was recognized in two categories, marking the first time Cummins has received two awards in the same year. Cummins was recognized as the Powertrain Supplier of the Year and the Technical Cost Reduction Supplier of the Year.
“For 2013, Cummins and Ram Trucks redefined the capability of a heavy-duty pickup engine. The class leading Cummins turbo diesel engine is the direct result of the hard work and dedication of all of the Cummins employees that support the Ram truck business,” said Dave Crompton, vice president – engine business. “Countless hours have contributed to these two awards and we are very pleased by the recognition from our 25 year partner.”
The Cummins 6.7-liter turbo diesel is available in the Ram 2500/3500 heavy-duty pickups and the Ram 3500/4500/5500 chassis cabs. In 2013, Cummins powered Ram trucks set a new benchmark in the heavy duty pickup market. The Cummins Turbo Diesel is available with 850lb-ft of torque and provides pulling power for a class leading 30,000lbs towing.
“Our supply base manufactures more than 70% of the content on our cars and trucks,” said Scott Kunselman, head of purchasing and supplier quality, Chrysler Group. “It is critical that they are as focused as we are on creating innovative, high-quality vehicles that our customers want to drive. Our award-winning suppliers like Cummins have proven themselves to be motivated, capable and excited to be on the Chrysler team.”
Award recipients were determined based on an evaluation of each company’s external balanced scorecard performance in 2013 — a rating system that evaluates supplier performance in areas such as quality, delivery, cost, warranty and partnership — and input from Chrysler Group senior leadership.
During a speech Friday (May 2) to students at Purdue University in West Lafayette, Ind., Cummins Inc. Chairman and CEO Tom Linebarger outlined the company’s most extensive plan to date for environmental sustainability, including specific goals for reducing waste, water and energy.
A core part of the Columbus, Ind.-based company’s mission is demanding that everything Cummins does leads to a cleaner, healthier and safer environment, which has also proven to be a business advantage.
“Customers depend on us to help them achieve success and improve their bottom line while consumers rely on us to power the trucks, trains and ships that deliver their goods and services,” said Linebarger in a press release. “We also understand we have many stakeholders and we make every effort to deliver economic value to each of them. Equally important is delivering on our environmental mission and making a positive impact on communities around the world. Providing efficient and clean power is a win for our Company, a win for our customers, and a win for the environment.”
The plan Linebarger discussed came together after nearly two years of study and builds on the positive work that the company has accomplished over past decades. The plan for the first time brings together stakeholders from all corners of the company to execute a coordinated approach to the environment. Cummins examined its environmental footprint, putting special focus on water, waste and energy and greenhouse gases (GHGs). It prioritizes actions for the Company to address its biggest environmental opportunities – from the materials it buys to the emissions of its products.
A top priority for Cummins is its products. The company will continue to develop innovative designs for the efficient use of fuel and raw materials, building on successes like the Cummins-Peterbilt “SuperTruck,” praised by the President of the United States in February for achieving a 75% improvement in fuel economy compared to a typical truck on the road today.
“With millions of engines and generators in service, and customers in 190 countries and territories, there’s no question that Cummins has the global reach to make a positive impact on the environment,” Linebarger continued. “And, as a company, this is the right thing to do.”
The plan calls for the company to expand its efforts and to work even more collaboratively with its customers, communities and others to make a positive impact.
One of the biggest environmental opportunities is to address Cummins products in use. Cummins has extensive experience in this area. For nearly 10 years, the Company has used Six Sigma, the business problem-solving tool, to help customers operate their Cummins equipment more efficiently, saving them more than $3 billion since 2005. Ninety million gallons of fuel has been saved and about 1 million tons of carbon dioxide (CO2) has been avoided.
The plan lays out specific goals in the areas where Cummins has the most control – its facilities and operations. The goals include:
• Reducing energy use and GHGs by 25% and 27% respectively, adjusted to sales, by 2015.
• Reducing direct water use across Cummins by 33%, adjusted to hours worked, and achieving water neutrality at 15 manufacturing sites in priority water stressed countries by 2020.
• Increasing the company’s recycling rate from 89% to 95% and achieving zero disposal status at 30 sites by 2020.
“This is just the next step in our effort to reduce our footprint,” said Linebarger. “Once we achieve these goals, we will continue to set and accomplish new ones.”
First quarter revenue of $4.4 billion increased 12% from the same quarter in 2013. The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America. Revenues in North America increased 25% while international sales were flat compared to the first quarter a year ago. Within international markets, weakness in India, Australia, Mexico and Brazil offset higher revenues in China and Europe.
Net income attributable to Cummins in the first quarter was $338 million, or $1.83 per diluted share, compared to $282 million, or $1.49 per diluted share in the first quarter of 2013.
Earnings before interest and taxes (EBIT) were $528 million for the first quarter or 12% of sales. This compares to $437 million or 11.1% of sales a year ago.
“We delivered good incremental margins in the first quarter as demand in on-highway markets in North America improved. We are also well on track to deliver the expected benefits from our North American distributor acquisitions as we execute our plans and end market demand improves. Conditions in a number of international markets remain very weak, particularly in India and Australia, leading to lower demand for power generation and mining equipment,” said Chairman and CEO Tom Linebarger. “We continue to release exciting new products that will drive future profitable growth and we repurchased 3 million shares in the first quarter, consistent with our commitment to return 50 percent of full year operating cash flow to shareholders through a combination of dividends and share repurchase.”
Based on the current forecast, Cummins expects full year 2014 revenues to grow between 6% and 10%, up from its previous forecast of growth of between 4% and 8%, due largely to improving demand in North America.
To view the full report click here.
Cummins Inc. has promoted Jason MacLean to vice president, Power Generation Business Unit, supply chain. In his new role, MacLean will also become an officer of Cummins.
According to a press release, MacLean will continue to lead all functions within supply chain of the Power Generation Business Unit, including global manufacturing of generator sets and alternators in 16 locations, purchasing, logistics, order management, planning and supply chain HSE and quality.
“I am pleased to announce Jason’s well-deserved promotion,” said Tony Satterthwaite, president, Power Generation Business, and vice president, Cummins. “Jason has been instrumental in leading important supply chain improvements for the Power Generation business over the past three years and he is a key driver of our forward-looking strategy in this area. Jason will no doubt be a tremendous asset to us as we continue in our effort to achieve supply chain excellence.”
The Cummins Power Generation Business Unit is one of four primary business units of Cummins with a global network of distributors in over 190 countries servicing the commercial, industrial, recreational, emergency and residential segments.
MacLean joined Cummins in early 2006 as part of the Distribution Business Unit. He then moved to Power Generation as director of global supply chain and service before serving as executive director of corporate supply chain for all of Cummins.
He earned an MBA in finance and a masters in international studies in Russian from the University of Pennsylvania’s Wharton School of Business and Lauder Institute, and he received a bachelor’s degree in English and Russian from the University of Pennsylvania.
Indianapolis Mayor Greg Ballard and officials from Cummins Inc. today (March 26) announced plans for the company to locate its global distribution business headquarters from Columbus, Ind., and consolidate existing Indianapolis-based employees in a new downtown office building.
According to a press release, the global distribution business is one of Cummins’ four business units. The company plans to build its new Indianapolis office center on approximately four acres that previously housed Market Square Arena.
The company’s initial plan for the site includes an office building with ground floor retail, a training center, public greenspace and a parking garage on parcels bordered by Market, Alabama, Washington, and New Jersey Streets. The building will initially house up to 400 employees with future expansion possible. The company currently has approximately 100 employees working in two separate offices downtown.
Cummins will purchase the property for $4.3 million while Indianapolis will invest $3.3 million in infrastructure improvements and parking on the site and abate 70% of the development’s property taxes for 10 years. While design is not yet under way, Cummins said it is committed to contributing a significant architectural element to the downtown Indianapolis landscape that will be a great environment for its employees and a welcoming presence for the community.
Construction on the new building is expected to begin within the year and open by late 2016.
“We are pleased to announce that Indianapolis will serve as our global distribution business headquarters, while Columbus, Indiana, where our company was founded 95 years ago, will continue to serve as Cummins’ global corporate headquarters,” said Pamela Carter, president, Distribution Business, Cummins Inc.
Carter added, “The creation of a global headquarters for our distribution business takes a significant step toward our longstanding strategy of transforming the business through an expanded global footprint capable of supporting our customers and providing legendary sales, service and support. The move will facilitate better collaboration among our employees and accommodate growth resulting from the North American distribution business acquisitions.”
In 2001, about a year into his tenure as CEO of then-struggling Cummins Inc., Tim Solso did the unthinkable: He axed one of the two U.S. heavy-duty engine platforms under development, one in which the company had invested nearly three years and tens of millions of dollars.
“To kill an engine platform at Cummins back then, it was like a sacred cow,” says Jean Blackwell, who was then a vice president at the diesel engine maker. “Tim’s message was: ‘We need the right cost structure, and the customers have to want it.’ People weren’t used to hearing that.”
Automotive News reported that the recent selection of Solso as General Motors’ nonexecutive chairman didn’t come as a shock to former colleagues, given the parallels between his 12-year tenure at Cummins and the path of post-bankruptcy GM. Both involved a struggle to change the culture of a once-dominant but humbled company, whacking away at a bloated cost structure and a renewed effort to focus on the customer.
GM’s board views Solso, 66, as a steady hand to complement a capable but relatively green new executive team, according to two people familiar with the directors’ thinking. Mary Barra, 52, takes over as CEO on Jan. 15 from Dan Akerson. Her No. 2 will be GM CFO Dan Amman, 41, who will become president with broad operating oversight.
Still, it’s unclear how assertive Solso will be. Other than a brief period after GM’s 2009 bankruptcy, the company hasn’t had a nonexecutive chairman in nearly 20 years.
GM did not make Solso available for an interview to discuss his new job, which also begins on Jan. 15.
To read the entire article click here.
Cummins Inc.’s third-quarter earnings edged up 0.9% as the supplier of engines for heavy-duty trucks reported weaker revenue growth than expected and cut its full-year sales outlook.
The Wall Street Journal reported that Cummins, the world’s largest engine manufacturer based on sales, now expects revenue to decline 3% from 2012. It previously expected 2013 revenue to be flat.
“Revenues were below our expectations as we continue to face an environment of weak demand for capital goods in most of our major markets,” said Chairman and CEO Tom Linebarger.
Cummins reported a profit of $355 million, or $1.90 a share, up from $352 million, or $1.86 a share, a year earlier. Excluding one-time items such as tax adjustments, earnings increased to $1.94 from $1.78 a share. Net sales were up 3.6% to $4.27 billion.
Demand for Cummins’s engines has been lower this year in response to falling demand from heavy-duty truck makers and manufacturers of mining and construction machinery. Cummins is the largest supplier of heavy-duty truck engines in North America, accounting for about 40% of the market. Results for the components segment, however, have been helped by rising demand for replacement parts and demand for exhaust treatment systems from truck-maker Navistar International Corp. (NAV).
Revenue in North America increased 11%, while international revenue fell 4% as weaker demand in India, Australia and Europe offset growth in China and Brazil.
In the engine segment — the largest contributor to the top line — sales slipped 1.4% to $2.49 billion due to lower demand in global mining, stationary power and the light duty on-highway market in the U.S.
Components sales, meanwhile, climbed 14%.
Cummins unveiled cost-cutting measures several months ago, pointing to a weakening global economy. These efforts helped gross margin in the latest period widen slightly to 26% from 25.3%.
Cummins Inc. announced Friday (Oct. 4) the ISV5.0, a new 5-liter V8 diesel engine designed to power pickup-and-delivery vehicles, other light- and medium-duty trucks, school buses and motorhomes. The ISV5.0 extends Cummins range of clean-diesel engines for North American vehicles, and features industry-leading technology that delivers performance and a low total cost of ownership to customers.
“Cummins ISV5.0 creates new opportunities for our OEM customers as a compact and lightweight engine that delivers best-in-class fuel efficiency and total cost of ownership,” Dave Crompton, Cummins vice president and general manager – engine business, said in a statement. “Many of our customers have asked for a Cummins alternative for gasoline or other small displacement automotive diesel engines. The ISV5.0 represents the next dimension in fuel economy and performance as Cummins continues to broaden our on-highway product line.”
The ISV5.0 brings together a compacted graphite iron (CGI) cylinder block, forged steel crankshaft, high-strength aluminum alloy heads, and composite valve covers to offer maximum durability in a lightweight package. These features, along with dual overhead camshafts, also contribute to the excellent noise, vibration and harshness characteristics achieved by the ISV5.0.
High injection pressures from the latest Bosch High Pressure Common Rail (HPCR) fuel system and piezo fuel injectors provide precise fuel control for optimized in-cylinder combustion, leading to better fuel efficiency and reduced emissions. With multiple injection events driven by integrated electronic controls, the HPCR fuel system, along with Cummins variable geometry turbocharger (VGT), contributes to a very impressive peak torque of 560 lb-ft and quick throttle response. Ratings from 200 hp to 275 hp are available.
The ISV5.0 has been designed to easily fit where a comparable V8 or V10 gasoline engine was previously installed. Multiple front-end accessory drive options handle the common automotive accessories required by a wide spectrum of applications, including the alternator, air compressor, A/C compressor and hydraulic pump. These available options, coupled with Cummins integration expertise, minimize OEM engineering time and vehicle retooling costs.
Cummins Inc.’s second-quarter earnings fell 12% as the supplier of engines for heavy-duty trucks reported weaker margins, offsetting a slight increase in sales.
MarketWatch reported that the Columbus, Ind.-based engine maker unveiled cost-cutting measures several months ago, pointing to a weakening global economy that it said was driving down demand for its engines. The company described a particularly sharp contraction in the North American commercial truck market — where Cummins is the largest supplier of engines for heavy-duty trucks — saying trucking companies have been throttling back on their purchases because of uncertainty about freight volumes and the strength of the U.S. economy.
Cummins reported a profit of $414 million, or $2.20 a share, down from $469 million, or $2.47 a share, a year earlier. Excluding items, earnings per share were $2.45.
Net sales edged up 1.6% to $4.53 billion. Sales rose 7% in North America and declined 4% in its international markets, due to weaker demand in Europe, India, and Mexico. Gross margin narrowed to 25.5% from 27.2%.
In the engine segment — the largest contributor to the top line — sales dropped 7% to $2.7 billion.
Cummins Inc.’s board approved an increase in the company’s quarterly cash dividend on common stock of 25% to 62.50 cents per share from 50 cents per share.
According to a press release, the dividend is payable on Sept. 3 to shareholders of record on Aug. 22.
“The increase in our dividend, combined with our current share repurchase program, reflects our confidence in the long-term prospects for the company and demonstrates our commitment to increasing returns to shareholders,” said Tom Linebarger, chairman and CEO. “With today’s announcement we have increased the dividend by a total of 257% over the last four years, while continuing to invest in products and our global footprint that will drive future profitable growth.”
For more information about Cummins Inc., visit www.cummins.com.
The Columbus, Ind., City Council agreed to a pair of requests from Cummins Inc. during its meeting Tuesday (July 2) night.
The Columbus-based engine manufacturer asked for an area next to its Walesboro facility to be designated as an Economic Revitalization Area (ERA). That parcel of land is connected to an area already designated as an ERA when the Cummins Mid-Range engine plant was built there in 1991.
Cummins plans on constructing a 428,000 square-foot warehouse on the property. The company says that 25 jobs will be created and another 80 jobs retained. Cummins also plans to spend over $15 million in capital investment over the next two years.
Cummins officials say they plan on beginning construction of the warehouse in early October, with completion scheduled for next summer. Employees currently based on operations in Seymour, Johnson County and other areas will be transferred to the new facility. The new hires are scheduled to take place upon completion of the warehouse.
The Columbus City Council also approved a request from Cummins for a tax abatement. The company purchased an office building a few years ago and says it has spent $7.1 million as an initial investment in the property with no tax abatement.
The building is currently home to 376 Cummins office workers. Company officials say conditions are very cramped and as such, plan on expanding. Doing so, they say, would give current employees more space and allow employees at other facilities to join the campus, streamlining operations. The measure would increase headcount there to 525.
The council unanimously approved Cummins request for a tax abatement on $5.6 in additional investment.
Both Cummins requests were approved on first reading. A second reading is needed before approval is official. Those second readings are expected to take place at the next council meeting on Tuesday, July 16.
Engine maker Cummins Inc. is making plans for a major remodeling of an office building and a new $15 million warehouse near its southern Indiana headquarters.
The Republic reported that the company is asking the Columbus City Council to approve property tax breaks for the two projects.
Cummins proposes remodeling the four-story former Irwin Union Bank building in downtown Columbus that the company bought in 2010. Cummins is telling city officials that it plans to update the building’s mechanical, electrical and plumbing systems.
City attorney Jeff Logston says Cummins plans to move about 150 employees from other Columbus facilities to the building.
The new warehouse planned near Cummins’ Walesboro factory could add about 25 jobs.
The Columbus City Council could consider the tax break requests this week.
Property brokers say engine maker Cummins Inc. is considering several locations in downtown Indianapolis to build an office building that would expand its presence in the city.
As reported by The Associated Press, the Columbus-based company now leases space in two downtown buildings for about 70 employees. Cummins is looking to construct its own building of about 70,000 square feet, or more than double its current leased space.
Cummins spokesman Jon Mills says the company is evaluating its Indianapolis office presence and that it’s too early to discuss details of its plans.
Property broker John Robinson says Cummins would prefer a new building rather than leasing existing space.
Cummins has expanded its Columbus headquarters operations in recent years. It has some 7,500 headquarters and factory workers in southern Indiana.
Columbus, Ind.-based engine maker Cummins Inc. reported that first-quarter revenue of $3.9 billion decreased 12% from the first quarter of 2012, according to a company media release. Revenue in North America declined by 15% and international revenues declined by 10%.
Net income in the first quarter was $282 million, or $1.49 per diluted share, compared to $455 million, or $2.38 per diluted share, in the first quarter of 2012. Earnings before interest and taxes were $437 million or 11.1% of sales, compared to $658 million or 14.7% of sales a year ago.
The company’s light-duty automotive and RV segments posted first-quarter sales of $260 million compared to $286 million the year prior.
Cummins said that slower economic growth in China and a weakening North American truck market — where Cummins supplies nearly 40% of its heavy-duty engines — have squeezed the company’s sales and profits of late.
Chief Executive Tom Linebarger said that the company expects the first quarter to mark “the low point” for revenue this year. The company also restated its forecast for revenue to be flat to down 5% this year.
To view the entire report click here.
Columbus, Ind.-based engine maker Cummins Inc. topped the list of the 25 Best Companies in America compiled by The Motley Fool, a leading website for investors.
According to a press release, more than 1,700 publicly-traded companies were put through a rigorous process of analysis by The Motley Fool. Each company was evaluated for its success in serving investors, customers, employees, and the world at large.
The 25 highest-rated companies included well-known consumer names and tech companies along with lesser-known companies.
Senior Analyst John Reeves, who helped oversee the creation of the 25 Best Companies List, noted, “Too many ‘Best of’ lists look at just one factor, such as workplace satisfaction or stock returns. Our methodology is broader in scope and looks at multiple factors that make a company great.
“At The Motley Fool, we believe the companies that effectively serve all of their stakeholders’ customers, shareholders, employees and the world are not only outstanding companies, but possibly great investments as well.”