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July 9, 2014 9:25 AM, EDT
Cummins Appoints New President
Boosts Dividend, Sets Stock Buyback
Freeland, Crompton/Cummins Inc.

Rich Freeland has been promoted to president and chief operating officer at Cummins Inc.

He will report to Tom Linebarger, who remains the CEO and chairman. Freeland was president of the company’s engine business, its largest business unit.

“As someone who has been with Cummins since 1979, and has successfully led three of our four business units over the years, Rich knows what it takes to be dependable every time for our customers across the globe,” Linebarger said in a statement.

Dave Crompton, head of the heavy-duty midrange and light-duty segment of the engine business, will succeed Freeland as president of that division.

The company also announced its board of directors approved a 25% increase in the company’s quarterly dividend to 78 cents per share from 62.5 cents.

The dividend will be payable Sept. 2 to shareholders of record as of Aug. 22, Cummins said in a statement.

The board also authorized the company to repurchase up to $1 billion in shares of common stock upon completion of its current $1 billion share repurchase program.

“The increase in our dividend and the latest share repurchase program reinforces our commitment to increasing returns to shareholders and reflects our confidence in our performance over the long term,” Linebarger said in a July 8 statement.