Cummins Chairman and CEO Tom Linebarger and CFO Pat Ward presented the company’s five-year plan for profitable growth at a meeting with more than 100 Wall Street analysts and shareholders.
Cummins expects to grow revenues at 2 to 3 times the rate of growth in global GDP and laid out its targets for revenues and profitability in 2018 under two different economic scenarios to reflect the uncertain economic conditions ahead. Assuming a higher growth environment in the global economy, the company expects to deliver revenues of $31 billion and EBIT of 18 percent in 2018 and achieve return on equity above 25 percent. The company said that in an environment of lower global growth, it expects to deliver revenues of $25 billion and EBIT of 16 percent in 2018 resulting in return on equity above 20 percent.
"We are confident in our plans to grow faster than the end markets we serve," said Linebarger. "Our leadership in technology, strong partnerships and unmatched global presence allows us to deliver the best products and services to help our customers win in the markets where they operate all over the world. Cummins has made, and continues to make, significant investments in a range of exciting new products and in our distribution system to ensure that we continue to deliver profitable growth and help our customers succeed."