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Cummins expects profit to grow 10 percent a year

March 16, 2010

Columbus-based Cummins Inc., North America’s largest maker of heavy-duty diesel truck engines, expects pretax profit to increase 10 percent a year and sales to grow 13 percent annually over the next five years amid rising infrastructure spending.

By 2014, earnings will reach $8 to $8.50 a share and revenue will reach $20 billion, Cummins said Tuesday in a presentation to investors. The company earned $2.49 a share last year on sales of $10.8 billion.

Cummins in February forecast a return to “strong growth” in 2011 and said sales and earnings this year would be similar to last year. Engine sales in the first half of 2010 to North America and Europe will be slow as customers bought in advance of a 2010 emissions deadline requiring costlier engines, the company said last month.

Cummins shares fell 19 cents, to $60.03, at 9:49 a.m. in New York Stock Exchange composite trading. The stock has more than doubled in the past 12 months.

Revenue in China and India will return to pre-recession levels in 2010, with “solid” increases in Brazil, Cummins said last month.

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