Columbus, Ind.-based Cummins Inc. needs to add 7,000 engineers within five years, CEO Theodore Solso said Wednesday (Oct. 5) at a Bloomberg Innovation and Jobs Forum in Washington, D.C.
The Indiana Business Journal reported that the maker of diesel and natural gas engines and electric power-generation systems is forecasting a sharp rise in annual sales. Additional reductions in engine pollution and more stringent fuel efficiency rules will dominate engine technology and development for the next 10 years, requiring more engineering resources.
Those engineers will be hired in India, China and Africa as well as in the United States, United Kingdom and Brazil.
The company told analysts last month that its annual sales are forecast to grow by more than 60% and reach $30 billion in 2015. Cummins expects revenue growth to average 14% a year from 2011 to 2015.
Overseas demand and tougher environmental standards for engine emissions are pushing Cummins’ revenues higher, overcoming weak economic growth in several global markets.
“Several of the economies where Cummins operates are clearly weakening,” COO Tom Linebarger told analysts last month. “We really don’t know how deep it will go. We are confident in the long-term profitable growth of the company.”
Company officials said tighter standards for engine exhaust have allowed Cummins to leverage its engineering expertise, particularly in emerging markets where some domestic rivals lack the technical skill to comply with the tougher rules.
The expansion of infrastructure in emerging economies such as South America, China and India is driving demand for Cummins’s engines used in construction equipment, commercial trucks, and power generators.
The company’s engine shipments are also being helped by expanded output of oil, natural gas and mined commodities, executives told analysts.
Cummins Inc. predicted Tuesday (Sept. 13) that its annual sales will grow by more than 60% to reach $30 billion in 2015, according to a report in the Wall Street Journal.
The commercial-engine maker said it expects overseas demand for its products and tougher standards for engine emissions to drive sales higher, despite sluggish economic growth in several of its geographic markets.
“Several of the economies where Cummins operates are clearly weakening,” said Tom Linebarger, the company’s COO, during a presentation to analysts Tuesday. “We really don’t know how deep it will go. We are confident in the long-term profitable growth of the company.”
To reach the $30 billion goal, Cummins expects revenue growth to average 14% a year from 2011 to 2015. The Columbus, Ind., company anticipates consolidated revenue this year rising 35% from 2010 to $18 billion, putting the company on a course to easily surpass its previous long-range revenue goal of $20 billion in 2014.
Cummins anticipates sales from its engine business will grow by an average of 11% a year from 2011 to 2015, pushing annual engine segment sales to $17 billion. In its power generation business, the company expects sales growth to average 15% a year, sending sales to $6.2 billion in 2015.
Cummins also increased its pre-tax profit margin target to 18% of sales in 2015, from the 14.5% seen for 2011. The company’s previous long-range profit margin goal was 12.5% for 2014.
The company’s sales and profit have been historically susceptible to cyclical demand swings for commercial trucks and construction machinery. But a decade-long campaign to diversify the company’s product lines and raise its sales in fast-growing emerging markets such as China, India and Brazil transformed Cummins into a larger and stronger company, Chairman and Chief Executive Tim Solso said.
“Where we are is clearly better than anybody at Cummins ever thought,” said Solso, who will be replaced as chairman and CEO by Linebarger at the end of the year.
The rapid construction of infrastructure and cities in emerging economies is driving demand for Cummins’s engines for construction equipment, commercial trucks, power generators and other machinery. Cummins’s engine sales are being further propelled by expanded production oil, natural gas and mined commodities.
Moreover, stricter standards for engine exhaust has allowed Cummins to flex its engineering muscle, particularly in the emerging markets where some domestic engine manufacturers lack the technical expertise to comply with the tougher standards. Linebarger predicted that further reductions in engine pollution and improving fuel efficiency will be dominant themes for engine technology for the next 10 years.
Cummins’ new strategy aims to make its engines more competitive at the lower price ranges of the engine markets. Like many U.S. capital equipment manufacturers trying to expand their sales in emerging markets, Cummins has run into stiff competition from domestic companies selling equipment at lower prices.
“There is no question that the competition is increasing,” said Linebarger. “Instead of running from low-cost Chinese competition, we’re going to be the low-cost Chinese competition.”
Columbus, Ind.-based Cummins Inc. second-quarter net income more than doubled on a steep increase in sales and a gain on the sale of its exhaust business, the engine maker said Tuesday (July 26).
The Associated Press reported that the results came in well ahead of Wall Street estimates and the company boosted its sales prediction for the year. In premarket trading, Cummins shares jumped $5.63, or 5.3%, to $112.29.
Cummins earned $505 million, or $2.60 per share, up from $246 million, or $1.25 per share, in the same quarter last year. Excluding the one-time gain on the sale of the exhaust business, Cummins said it posted an adjusted profit of $2.41 per share.
Sales rose 45% to $4.64 billion from $3.21 billion in the year-ago period.
Analysts, on average, expected a profit of $2.07 per share on $4.4 billion in sales, according to a FactSet survey.
Cummins, which makes diesel engines and power-generation equipment, said sales at its engine segment jumped 53% to $2.9 billion as a result of strong growth in worldwide truck markets and off-highway markets including mining and oil and gas.
Meanwhile, sales at Cummins’ components business rose 42% to $1 billion, as North American demand for on-highway products continued to recover. Sales at the company’s distribution segment rose 36% to $785 million, while power generation sales rose 28% to $909 million.
The company boosted its sales forecast for 2011 to $18 billion from its April prediction of $17 billion. Analysts expect $17.34 billion in sales for the year, according to FactSet.
Cummins Power Generation announced that Antonio Leitao has been named vice president, Power Products, responsible for generator sets below 1 MW.
According to a press release, the Power Products business unit will provide a portfolio of generator sets, generator drive engines and automatic transfer switches to meet global demand for standard power products in markets including recreational vehicle, telecom, rental, residential, military, commercial and recreational marine.
Leitao has been with the company since 2002, when he joined the Cummins as the director for commercial generator sets in the Europe, Middle East and Africa (EMEA) region based in the UK. In 2007, Leitao assumed leadership of the commercial generator set business in the Asia Pacific region and in 2008 he was promoted to executive director of Commercial Products. In that role, he was responsible for the global commercial generator set business.
Leitao came to Cummins from SDMO, where he held roles in operations, electrical engineering and global sales. Cummins Power Generation, based in Fridley, Minn., is a division of Cummins Inc.
As Columbus-based Cummins Inc. (NYSE: CMI) continues to grow internationally, the company’s incoming CEO is making it clear the engine maker’s roots are firmly in Indiana.
In an interview that will air this weekend on Inside INdiana Business Television, Tom Linebarger, who will become the sixth executive to lead the company since it was founded in 1919, says managing global growth will be a key challenge as Cummins moves forward and continued success in international markets will mean good things for Indiana.
Cummins currently has approximatley 6,000 employees in Indiana.
Linebarger, currently president and COO and a 17-year company veteran, will succeed Tim Solso as CEO January 1.
Solso’s retirement caps a 40-year career at Cummins, where he helped lead the company to record performance. Company sales grew from $6.6 billion in 2000 to $13.2 billion in 2010 – Cummins’ best year ever with a record profit of more than $1 billion.
The company’s market capitalization grew tenfold under Solso’s leadership.
As reported by the Indianapolis Star, Solso, 64, will be succeeded by Tom Linebarger, Cummins’ president and COO, the company said Tuesday (July 12).
Since Solso was named chairman and CEO of Columbus, Ind.-based Cummins in 2000, annual sales have doubled to $13.2 billion, its stock price has soared from a low of $4.28 a share in 2002 to a high of $121.49 in May, and international business has surged from 40% of sales to more than 60%.
“Tim has led the company through many years of record performance and outstanding shareholder returns,” said Alexis Herman, lead director of Cummins’ board.
The switch at the top was hardly unexpected at Cummins, a publicly traded Fortune 500 company that has had only five chief executives in its 92-year history.
“It’s time for fresh eyes to take this company to the next level,” Solso said. “It’s a great time to make the change.”
Linebarger, 48, has worked closely with Solso since being named CFO in 2000 and president and COO three years ago. He said he’ll retain his office at the company’s headquarters in Columbus after taking the top job Jan. 1. Solso in recent years primarily worked out of Cummins’ downtown Indianapolis office.
Solso, who has a bachelor’s degree in psychology from DePauw University in Greencastle, began his 40-year career at Cummins as an assistant in the personnel office. He later moved to the operations side of the business and worked for Cummins abroad, including in England and Brazil.
Barron’s magazine named him to its list of the 30 most respected company CEOs this year and last.
Solso, who lives in Indianapolis, said he’s been too busy running Cummins to make retirement plans. But they won’t include running another business, he said. He said he’d consider community work involving education, the environment or “social justice type issues.”
Linebarger, who has master’s degrees in business and engineering from Stanford University, began at Cummins as an intern working on an engine line. He was hired full time in 1994 and worked his way up through management jobs on the engine side.
The incoming CEO said he sees his biggest challenge as coping with Cummins’ growth opportunities. The company projects its sales to grow more than 12 percent a year, driven by demand for its high-efficiency truck engines and other power systems in the U.S. and abroad.
“The company is doing very well and has a good team in place. He (Solso) felt I was ready to go . . . and the board felt I was ready to go,” Linebarger said.
Cummins’ growth means hundreds of new jobs coming to Columbus, where the company is expanding its headquarters and manufacturing lines.
Cummins Inc. said Friday (June 10) it will hire 600 white-collar workers as part of a plan by the engine maker to triple the size of its headquarters work force in Columbus, Ind., by 2013, according to a report in the Wall Street Journal.
Many of the new jobs will be in engineering, information technology and human resources as Cummins expands its professional staff to accommodate the business growth it anticipates in the coming years, particularly overseas.
“Our success in global markets over the past few years allowed us to remain strong during the recent economic downturn and has positioned the company for a period of accelerated growth,” CFO Tom Linebarger said in a written statement.
The company expects to finish adding the 600 employees by the middle of 2013. Construction of a new office building will start this summer and is expected to be completed by late 2012. The 130,000-square-foot building will be connected to a similarly sized building that Cummins began using in 2009. The company late last year also purchased a former bank building across the street from its headquarters building that will house 350 employees by the end of this year.
Cummins projects its work force in downtown Columbus will reach 3,000 people by 2013, three times larger than the employee head count in 2008.
Cummins manufacturers engines used in commercial trucks and motorhomes along with a variety of commercial and industrial applications, including oil and gas drilling and electric power generation. The company reported record profit last year largely on the strength of its business in China, India and Brazil. Cummins expects sales and profit growth to continue this year as its end markets in the U.S. recover from the economic recession.
Minneapolis, Minn.-based Cummins Onan, a subsidiary of Cummins Inc., announced Wednesday (June 1) it had filled two positions within its Consumer Business division.
Anne Limthawornkit takes on Six Sigma black belt responsibilities for the Consumer marketing and sales organization, reporting to Cathy Buening-Griffin, executive director, Cummins Onan Consumer Business. Limthawornkit will also lead the Consumer Six Sigma process that includes project management, savings tracking and project-idea facilitation.
Limthawornkit joined Cummins Power Generation in 2008 in the Supply Chain Strategy, Improvement and Analytics group as a senior analyst. She earned a bachelor’s degree in business administration from Chulalongkorn University in Thailand in 2001 and an MBA with an emphasis in strategy and general management from the Carlson School of Management at the University of Minnesota. Prior to joining Cummins, Limthawornkit worked for Nestle in Thailand for five years, working on supply-chain-improvement projects.
Jess Goh has accepted the position of business development manager for the Asia Consumer business, also reporting to Buening-Griffin. Based in Singapore, Goh will have responsibility for leading the account management and business development of the consumer products for territories within the Asia region.
Prior to joining Cummins, Goh was with One Connect International, Ltd., in charge of the oil and gas business segment. She was responsible for negotiating, developing and concluding business deals as well as managing key accounts. She graduated from the National University of Singapore with a bachelor of science.
Cummins Inc. expects significant sales and profit growth in 2011 and beyond as it takes advantage of a number of long-term global economic trends and the recovery of key U.S. markets, Chairman and CEO Tim Solso told shareholders Tuesday (May 10) at the company’s annual meeting.
According to a press release, the company expects 2011 sales to grow by nearly 30% from $13.2 billion in 2010 to $17 billion and Earnings Before Interest and Taxes (EBIT) to be 14% of sales this year – both company records – Solso said. Cummins earned a record EBIT of $1.7 billion on sales of $13.2 billion in 2010.
The company also will significantly increase its investment in the business this year, expecting to spend as much as $650 million on capital projects to increase capacity and invest in new technologies and products for the future. In addition, the company expects its joint ventures to make $300 million in capital investments to expand their businesses.
“The actions we have taken over the past two years have kept Cummins strong during the recession and have set the stage for a period of sustained profitable growth,” Solso said. “We have more growth opportunities ahead of us today than at any time in our history.
“Our challenge is to pursue those opportunities with the same discipline we displayed during the recent global recession. I am confident that we have the people and strategies in place to lead us to accelerated growth over the next several years.”
Solso also recapped the company’s successful year in 2010, which included strong growth across all of the company’s business segments and in large international markets such as China, India and Brazil. Cummins’ record profitability in 2010 came despite weak commercial truck markets in the U.S., which are expected to recover significantly in 2011 and grow further in 2012 and 2013.
“Last year showed, beyond a doubt, that Cummins is more than a North American heavy-duty truck engine maker,” Solso said. “Our Engine and Components businesses earned record profits in 2010 despite a sharp decline in our important U.S. markets, and our Power Generation and Distribution businesses performed extremely well as we continued to grow our leadership position in markets around the world.”
The company also continued to return value to its shareholders in 2010. Cummins’ stock price appreciated by more than 140% in 2010 and the company increased its dividend by 50%. Cummins also repurchased $241 million of its stock in 2010 – in addition to $190 million in repurchases in the first quarter of 2011.
In the business portion of the meeting, Cummins shareholders voted to elect the 10 Cummins directors standing for election to the board for another year and ratified PricewaterhouseCoopers LLC as the company’s external auditing firm for 2011.
Cummins Inc. today (April 26) reported sharply higher sales and earnings compared to the first quarter of 2010 on continued strength in key international markets, a recovering North American truck market and productivity improvements.
First quarter sales of $3.9 billion were up 56% from $2.5 billion in the same period in 2010. Earnings before interest and taxes (EBIT) were $532 million or 13.8% of sales, double the company’s earnings from the same period a year ago. EBIT as a percentage of sales in the first quarter was at its highest level in at least 25 years, according to a news release from the Columbus, Ind.-based multinational company.
Net income attributable to Cummins Inc. was $343 million ($1.75 per share) compared to $149 million (75 cents per share) in the first quarter of 2010.
“Our outstanding first quarter results demonstrate that we are well positioned to take advantage of our significant growth opportunities as markets around the world continue to recover,” said Tim Solso, chairman and CEO. “The work we have done over the past two years to keep the company strong during the global economic recession is paying off today.”
As a result of the company’s performance in the first quarter and its forecast for the remainder of the year, Cummins today increased both its EBIT and sales guidance for 2011. The company now expects to earn 14 percent EBIT on $17 billion in sales in 2011.
Engine segment sales of $2.4 billion were up 68% compared to the same quarter a year ago, which was artificially weak due to a change in emissions standards and the economic downturn. Segment EBIT of $290 million, or 12.1% of sales, was a quarterly record.
Engine shipments in the global heavy-duty truck market more than tripled year-over-year, while medium-duty truck engine shipments increased 114%. In addition, shipments to global industrial markets such as construction (up 60%) and mining (up 59%) also were strong.
Sales in the Components segment, propelled by recovery in Europe, growth in China and India, and higher content of emission controls products on engines in North America, were up 47% to a record $924 million. Segment EBIT of $105 million, or 11.4%, also was a quarterly record for the Components group.
Power Generation sales increased 54% to $795 million on the strength of improved sales in its commercial products. Total segment sales in Western Europe increased 88%; 81% in the Middle East and 47% in India. Segment EBIT was $89 million, or 11.2% of sales.
The Distribution segment saw a sales increase of 35% to $642 million due to growth in most major markets, especially Europe, North and Central America and Asia Pacific. Segment EBIT of $89 million, or 13.9% of sales, was a quarterly record.
The company’s non- U.S. markets continued showing strong growth as sales were up in every major international region compared to the same period last year. Consolidated sales in China were up 66%; India 31%; Brazil 39%; Africa and Middle East 40%. Sales outside the United States accounted for 61% of the company’s revenue in the quarter.
“Our first quarter results reflect strong growth in demand for our products across most of our markets,” said Cummins president and COO Tom Linebarger. “We expect the growth to continue and are investing significantly in the additional capacity needed to serve our customers around the world.”
The company’s guidance for 2011 excludes any gains from the previously announced sale of two businesses, which are expected to close later in the year.
The company continued to return value to shareholders by repurchasing $190 million worth of company shares in the first quarter. Cummins also announced a new share repurchase program in February that authorizes the acquisition of up to $1 billion in stock.
Cummins Inc. today (March 11) announced that Chairman and CEO Tim Solso is one of 10 business leaders expected to be appointed by President Barack Obama to the President’s Management Advisory Board (PMAB), according to a news release.
The PMAB was established in April 2010 to provide advice on how to implement best business practices to improve management and operation of the federal government.
The board, chaired by the Deputy Director for Management of the Office of Management and Budget Jeffrey Zients, will advise both the president and the President’s Management Council, the senior-most interagency group that includes the deputy secretaries from the major executive departments and agencies.
The PMAB builds on the work of the President’s Accountable Government Initiative and the 2010 White House Forum on Modernizing Government, which brought together 50 of the country’s top CEOs. That group shared ideas about adapting their proven techniques and practices to spark improvements in efficiency and effectiveness across the government.
In announcing his intention to nominate Solso and the other members of the Presidential Management Advisory Board, President Obama said: “I am grateful that these impressive individuals have chosen to dedicate their talents to serving the American people at this important time for our country. I look forward to working with them in the months and years ahead to deliver a government that’s more affordable, effective and efficient.”
Solso, 64, has been chairman and CEO of Cummins since January 2000 and has been with the company since 1971. In addition to his role at Cummins, Solso is active in a number of public policy organizations.
He serves as the U.S. chairman of the U.S.-Brazil CEO Forum, formed by the governments of both countries in 2007 to improve economic ties between the United States and Brazil. He is a founding member of the American Energy Innovation Council, which was created in 2010 to advocate for clean energy technology development in the United States. He also is a board member of the Initiative for Global Development, an organization committed to reducing poverty worldwide through economic development.
In addition to Solso, the other prospective nominees to PMAB are:
Greg Brown, president and CEO of Motorola Solutions Inc.; Sam Gilliland, chairman and CE) of Sabre Holdings; Jeffrey B. Kindler, former chairman and CEO of Pfizer Inc.; Debra L. Lee, chairman and CEO of BET Networks; Gail J. McGovern, president and CEO of the American Red Cross; Shantanu Narayen, president and CEO of Adobe Systems Inc.; Enrique Salem, president and CEO of Symantec Corp.; Elizabeth A. Smith, CEO of OSI Restaurant Partners LLC; and Ronald A. Williams, chairman of Aetna Inc.
Cummins Inc. has announced the release of its high output 6.7L turbo diesel engine for Ram heavy duty pickup trucks. This new high-output rating produces more torque where customers need it most, up to a peak of 800 lb.-ft., according to a news release.
Cummins will begin producing its High Output 6.7L turbo diesel engines at its Columbus, Ind., MidRange Engine Plant (CMEP) in the second quarter of this year. They will be available in Ram heavy duty pickup trucks with the automatic transmission option.
With 800 lb.-ft. of torque at 1600 rpm, power is increased across a wide speed range of 1200-2700 rpm. This delivers up to 46 additional HP at typical highway cruising speeds while maintaining 350 HP at 3000 rpm.
“The 6.7-liter turbo diesel’s base engine is the Cummins ISB, which is used in a variety of demanding applications and can produce significantly higher ratings than what is offered in pickup trucks,” said Scott Henry, chief engineer for the Cummins turbo diesel. “From an engineering perspective, our work to develop the high-output rating for the 6.7-liter turbo diesel was in the advanced-performance tuning. The crankshaft dampener was the only engine part that we needed to change as a result of the increased torque.”
Along with the new 800 lb.-ft. torque rating, the Cummins 6.7L turbo diesel continues to offer the most powerful integrated exhaust brake available in a heavy-duty truck. Cummins’ best-in-class integrated exhaust brake, with a full 222 braking horsepower at the wheel, gives Ram heavy duty pickup customers more confidence while towing the heaviest loads down the most severe grades.
“Eight hundred foot-pounds of torque is enormous force, and with the Cummins inline six-cylinder configuration, customers really get the best of both worlds,” Henry stated. “They get high-output torque, along with the durability and low cost of ownership expected from an inline six. And this is still the only diesel in a heavy-duty pickup that doesn’t need diesel exhaust fluid. The Cummins turbo diesel has produced decades of legendary performance in Ram heavy duty trucks, and will continue to be the best-in-class engine that customers can depend on for years to come.”
Cummins Inc. today (Feb. 1) reported record profits for all of 2010, as well as record quarterly sales and profits for the fourth quarter, on the strength of significant growth in key international markets and improved productivity in its global manufacturing operations.
Fourth quarter sales were $4.14 billion, up 22% from $3.40 billion during the same period in 2009. Earnings Before Interest and taxes (EBIT) were $541 million, or 13.1% of sales, a 41% increase from $383 million, or 11.3% of sales. The fourth quarter 2009 results include a pre-tax charge of $4 million to cover the costs associated with restructuring.
Net income attributable to Cummins Inc. was $362 million ($1.84 per share) compared to $270 million ($1.36 per share) in the fourth quarter 2009.
For the fourth quarter, the Engine, Components and Distribution segments all reported record sales and segment EBIT. The Power Generation segment, which was affected by the recession later than the company’s other business segments, continued to rebound and reported strongly higher sales and segment EBIT than during the same period in 2009.
For the full year, sales were $13.23 billion, up 22% from $10.80 billion in 2009. EBIT of $1.66 billion, or 12.5% of sales, increased 114% from $774 million, or 7.2% of sales excluding restructuring and other charges, in 2009.
Net income attributable to Cummins Inc. was $1.04 billion ($5.28 per share) from $428 million ($2.16 per share) in 2009. Results for 2009 included restructuring and other charges of 33 cents per share.
Full-year 2010 sales were second only to 2008, while EBIT and net income attributable to Cummins Inc. were company records. Three of the company’s four business segments – Engine, Components and Distribution – reported full-year record earnings, while Power Generation also posted strong sales and profit gains from the previous year.
Foreign Sales Prop Up Lagging U.S. Market
The company’s strong performance in 2010 came despite a significant decline in its important North American truck engine markets, which were affected by the continued weakness in the U.S. economy and a change in emissions standards. Engine shipments to the North American heavy-duty truck market fell 61% and 44% to the North American medium-duty truck and bus markets.
Those decreases were more than offset by growth in international markets, particularly China, India and Brazil, and the company continues to benefit from actions taken over the past two years to improve the productivity of its manufacturing operations around the world.
Sales in China and Brazil increased by more than 70%, while sales in India rose 37% for the year. Cummins’ total international sales increased by 48% from 2009 and accounted for 64% of the company’s total sales in 2010.
“2010 was the best year in the company’s history,” said Chairman and CEO 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.
Glowing Forecast for 2011
“Given our strong balance sheet, the expected recovery of our North American markets and the global growth opportunities in front of us, we are forecasting further significant growth in 2011 and beyond.”
Based on its current forecasts, Cummins expects sales to grow to $16 billion in 2011 and EBIT to be 13.5% of sales.
The company is forecasting sales to grow by 25% in its Engine and Components segments in 2011, led by recovery in the North American truck markets. The company expects sales to increase by 15% in both its Power Generation and Distribution segments, driven by improving markets in North America and continued strength in key international markets.
In addition to the expected economic recovery in North America, the company also is forecasting further strong growth in China, India and Brazil as well as in other parts of the world, including Mexico, the Middle East and Europe.
The company expects to invest $600-$650 million in capital expenditures in its consolidated operations. In addition, the company expects its joint ventures to make $300 million worth of capital investments in their operations to expand their businesses.
“We have significant growth opportunities in markets around the world, and we are well positioned to take advantage of those opportunities,” said President and COO Tom Linebarger. “In particular, we expect a significant recovery in the North American truck markets this year, where our new engines are performing very well.
“We shipped 62,000 engines to the North American truck markets in 2010 equipped with Selective Catalytic Reduction systems, which have allowed us to meet the stringent EPA emission standards and provide improved fuel economy to our customers.”
The chief executive of a leading Indiana-based manufacturer believes “what we’re doing now isn’t working” when it comes to education.
Cummins CEO Tim Solso told INside INdiana Business education is the one item that could limit growth of the state’s manufacturing sector. He says there could be a lack of skilled workers once a large portion of advanced manufacturing employees reach retirment age within five years.
He says workers want to be in Indiana because it’s a good place to live, but without top notch schools, employees will want to be elsewhere.
Solso has helped guide Cummins through some rough times, including the recession that hit in 2000. He says that experience brought the Columbus-based company’s management team together and set the stage for the Cummins’ eventual success, but he admits to being “frightened” during that crisis.
In the past few years, Solso says it has been strong growth in countries like India, China and Brazil that has led the company’s resurgence.
He says Cummins’ Chinese operations have generated a $150 million operating profit, allowing the company to launch a $300 million program for a new engine plaftorm leading to an investment in Seymour, Ind.
The chief executive who has led a dramatic turnaround at Columbus-based Cummins Inc. continues to be bullish on the future of the diesel engine maker.
During an extended interview to air this weekend on Inside INdiana Business Television, Cummins Chairman Tim Solso says he has “never seen us have as much opportunity as we have now.” Under his leadership, Cummins has gone from the brink of disaster to a technology-driven company focused on innovation and sustainability.
Solso was named CEO in 2000, at a time when the company was saddled with heavy debt and declining demand for its products. Under his leadership, Cummins shrank its work force to meet market demand and essentially changed its culture by embracing emissions regulations as a competitive advantage.
Cummins has used technology and innovation to grab market share in emerging areas around the globe and that has translated into jobs in Indiana. In late October, the company announced plans to add 350 jobs at its Columbus headquarters, a result, says Solso, of business growth in China, Indiana and Brazil. Earlier this month, Cummins announced plans for a major new plant in Turkey, that it expects to one day employ 800 workers.
Recently, MarketWatch selected Solso as one of the top five CEOs of the decade for his role in reinventing Cummins. One measure of Solso’s effectiveness: Cummins’ stock price. In late 2000, it stood at $9.48. It opened for trading this morning at more than $108.