Diesel engine maker Cummins Inc. said it expects significant sales and profit growth in 2011 and in future years.
“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,” Chairman and CEO Tim Solso told shareholders.
“We have more growth opportunities ahead of us today than at any time in our history,” Solso said Cummins’ annual meeting, held at its headquarters in Columbus, Ind.
Cummins expects 2011 sales of $17 billion, up nearly 30% from 2010, and Solso said Cummins earned a record $1.7 billion in profits in 2010 before interest and taxes.
The company will “significantly” increase its investment this year, spending up to $650 million on capital projects to increase capacity and invest in new technologies and products for the future, Solso said.
In addition, Cummins said its joint ventures will invest $300 million to expand its businesses.
All North American truck manufacturers now offer their own engines in the “vertical integration” model. Caterpillar Inc., the only other maker of heavy-duty highway engines, withdrew from the market after 2009.
