How Cummins will Thrive for the Next 100 Years

Cummins Chairman and CEO Tom Linebarger speaks at Tuesday's Annual Meeting.
Cummins Chairman and CEO Tom Linebarger speaks at Tuesday's Annual Meeting.

Chairman and CEO Tom Linebarger celebrated Cummins' 100th anniversary and a successful 2018 at the company's Annual Meeting Tuesday, but he said Cummins must push to meet significant challenges ahead to thrive for the next hundred years.

“It’s worth celebrating. It’s worth stopping and wondering what got us here,” Linebarger said of the 100-year milestone the company reached in February. “…But we must also look forward. We need to ask ourselves, ‘What do we need to bring with us and what do we need to change and improve upon, in order to compete for the next 100 years?’”

He said Cummins anniversary theme, Challenge the Impossible, should help ensure the company doesn’t simply look backwards in 2019.

A SIGNIFICANT ACCOMPLISHMENT

The company’s Annual Meeting is an opportunity for Cummins' leaders to talk about the company’s past year and the future to come. The meeting was held at the Columbus Engine Plant in the company’s headquarters city of Columbus, Indiana (U.S.).

Linebarger did not want to diminish the significance of the anniversary.

“An anniversary is an anniversary, but 100 years as an independent company is not easy to achieve,” he said. “It’s a really important milestone for our company and, frankly, given the change in industry and technology and competitive environment, it’s just getting harder and harder to last 100 years. The odds are pretty strongly against you and here we are 100 years later, still fighting, still succeeding.”

Tom Linebarger speaking at 2019 Annual Meeting
Cummins Chairman and CEO Tom Linebarger lays out the key steps the company must take to thrive in the next 100 years.

He said 2018 was a very strong year, with a company record of $23.8 billion in sales, a 16 percent increase over 2017, which was also a strong year. In the first quarter of 2019, the company had the most profitable quarter in its history.  

INNOVATION IS KEY

Linebarger said to thrive like that in the next 100 years, during good economic times and bad, Cummins must continue to be a leader not just in diesel platforms, but also natural gas, hybrids, electrified power and fuel cells, if that’s where the technology develops.

“Diesel engines have been a leader in our industry for 100 years, but if we look out 100 years they will not be the product of choice in all of our markets,” Linebarger said.

In addition to technology leadership, he said the company must continue to build strong partnerships around the world. Some of the company’s partnerships go back as many as 80 years and have been critical to Cummins’ success.

Linebarger said the company must also continue to help build stronger communities, praising the company’s Cummins Powers Women program launched in 2018. The program is the company’s commitment to the advancement of women and girls around the world by working with nonprofits with proven programs in place to advance gender equity.

DOING MORE TO USE LESS

Finally, he said environmental sustainability will be increasingly important in the future.

“I think all of us know that in order to continue, in order to thrive a hundred years from now, there will be significant challenges to all industrial companies, and certainly a company in the power business, about what impact we’re having on the environment,” Linebarger said. “We will have to produce wealth for all stakeholders while using less, and it’s just that simple.”
 

Cummins India Limited Results for the quarter ended June 30, 2022

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Pune, India: Cummins India Limited (NSE: CUMMINSIND) The Board of Directors of Cummins India Limited (CIL), at their meeting held today, reviewed and approved the financial results for the quarter ended June 30, 2022. 


Performance Highlights (based on standalone financial results) for the quarter ended June 30, 2022:
 

•    Total Sales for the quarter at ₹ 1,657 Cr. increased by 42% compared to the same quarter last year and by 13% compared to the previous quarter.
•    Domestic sales at ₹ 1,172 Cr. increased by 36% compared to the same quarter last year and by 12% compared to the previous quarter.
•    Exports Sales at ₹ 485 Cr. increased by 58% compared to the same quarter last year and by 14% compared to the previous quarter.
•    Profit before exceptional items and tax at ₹278 Cr. is higher by 63% compared to the same quarter last year and higher by 14% compared to the previous quarter.
•    Profit before tax at ₹264 Cr. is lower by 13% compared to the same quarter last year and higher by 8% compared to the previous quarter.
 

Ashwath Ram, Managing Director, Cummins India Limited, said: 
 

The new fiscal year started positively with strong demand from most end markets. GST monthly collections, higher highway construction annual targets, and increased consumption of petroleum products reaffirms the strength of underlying trade activities. Geopolitical risk, high inflation, and supply chain disruptions continue to pose challenges. Cummins India can effectively meet demand despite these issues due to its integrated supply chain management with a global network. While we effectively deal with challenges and closely monitor any potential impact of rising interest rates on the demand, we remain optimistic about the short to medium-term demand outlook. 

Future Outlook:
 

The company believes that the strong demand from various end markets may likely sustain. At the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry. The company, being part of the globally integrated supply chain, is well positioned to manage parts supplies to mitigate the impact on revenue and profitability. We are closely monitoring the result of the geopolitical events unfolding in different parts of the world and their impact on global demand and supply chain. Considering the uncertainty, the company will not provide any guidance for FY 23.
 


About Cummins India Limited 


Cummins India Limited, part of the Cummins Group in India, is headquartered in Pune since 1962 and is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets. Cummins India Limited has a country-wide network of 20 dealerships with over 450 service points that provides products, services, and after-market solutions for uptime of Cummins equipment and engines to customers in India, Nepal, and Bhutan. 
 

About Cummins Group in India:
 

Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute, and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions, and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high-performance outlook is based on customer focus, integrity, and capability of its people. Part of the $19.8 billion Cummins Inc. USA. Cummins in India is a Group of seven legal entities across 200 locations in the country with a combined turnover of ₹17,900 crores in 2021 and employing over 10,000 individuals. Learn more at cummins.com.

Cummins salutes its star dealers in U.K. and Ireland for their exceptional performance

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Cummins, a global power leader, has bestowed prestigious awards to three of its dealers in the UK and Ireland.

The trio – Vasi Southern Ltd, Universal Components UK Ltd and CSL Power Systems Ltd – were recognised for their outstanding focus on customer satisfaction and for delivering exceptional performance and results.

Relating to the 2021 calendar year, the awards cover a period when the UK and Irish economies were still coming to terms with the disruption caused by the Covid pandemic.

Customers of Cummins, spread across a variety of business sectors, looked to their local dealer to provide the continuity of service that was essential if they were to trade through the toughest of times.

All three Cummins award winners demonstrably went above and beyond what their customers were expecting.

Vasi Southern Ltd is an approved parts and service dealer based in the port city of Southampton. It specialises in marine engines and Onan generator sets. The company won the same award in 2020 and its back-to-back success was down to a commitment to increasing revenue and achieving all of its key performance targets.

Simon Green – Vasi Southern Ltd
Simon Green – Vasi Southern Ltd

Universal Components UK Ltd is an approved parts dealer based in Barnsley, South Yorkshire. In 2021, it achieved the highest sales growth by any dealer within the Cummins UK and Ireland network. Its strategic stockholding meant the business could ride out supply challenges while continuing to target new markets and geographical locations.

Rick Lewis & Stuart Ponsonby – Universal Components
Rick Lewis & Stuart Ponsonby – Universal Components

CSL Power Systems Ltd, based in Kent with additional resource availability nationwide is an approved Power Generation sales and service dealer. The company is a specialist in the installation and maintenance of industrial generator sets, including units for banks and commercial buildings.

Kurt Gozzett & Todd Trent – CSL Power Systems
Kurt Gozzett & Todd Trent – CSL Power Systems

As well as achieving all its key performance targets, CSL Power Systems Ltd demonstrated a clear desire to grow its operations, proactively promoting the Cummins product.

Graham Cook, Cummins’ Dealer Manager for UK and Ireland, praised the award-winning dealers for their commitment, commenting: “Our authorised dealers throughout the UK and Ireland form an integral part of our sales network. Vasi Southern, Universal Components and CSL Power Systems demonstrated their commitment and capabilities through 2021, further strengthening the channel, maximising profitable aftermarket growth, and delivering excellent customer support.

To locate your nearest authorised Cummins dealer visit our sales and service locator

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