A surge of new products could drive Cummins Inc. sales to $20 billion by 2012, CEO Tim Solso told The Republic, a newspaper in the southern Indiana city. That would be about twice the $11 billion the diesel engine maker reported for 2006.
Much of the increase would come from light-duty diesels the company is preparing to make in Columbus for DaimlerChrysler AG pickup trucks and sport-utility vehicles, Solso said.
He also said the likelihood of Cummins’ becoming an acquisition target by Italian carmaker Fiat SpA is “highly remote.”
Speculation that Fiat might take over Cummins in its quest to enter the U.S. truck market contributed to a run-up in Cummins stock in the past month. Shares are trading near $89, up sharply from about $73 in mid-April.
The jump also was caused by a strong first quarter and recommendations by CNBC “Mad Money” host Jim Cramer.