Cummins Sees Continued Strong Growth in 2008

Diesel engine maker Cummins Inc. is on pace for a fifth consecutive year of record sales and profits in 2008 and is poised for “significant further growth over the next several years,” Chairman and Chief Executive Officer Tim Solso told shareholders at the company’s annual meeting Tuesday.

At the meeting, shareholders also voted to increase the number of shares of common stock to 500 million from 300 million, and defeated a shareholder proposal calling on the company to take steps to adhere to the conventions of the International Labor Organization, Cummins said in a statement.

Solso said that Cummins is targeting 12% sales growth and an earnings-before-interest-and-taxes goal of 10% of sales this year, and is targeting a 20% return on equity and a 25% return on average net assets.

Cummins said it saw its most profitable year ever in 2007 when it reported net earnings of $739 million on $13.05 billion in sales. Its total shareholder return of 118% placed it 10th among Fortune 500 companies, and its five-year average annual return of 58% was ninth best.