Cummins Corp. recently released its 2007 financial results, showcasing a year of strong performance and continued growth. The company achieved record sales and profits for the fourth consecutive year, reflecting its solid business strategy and global market presence.
In 2007, Cummins reported annual sales of $13 billion, a 15% increase from $11.4 billion in 2006. EBITDA reached $1.23 billion, representing 9.4% of total sales, up 4% compared to the previous year. Net income also rose by 3%, reaching $739 million. These figures highlight the company’s consistent financial strength and operational efficiency.
Despite challenges in the North American heavy truck market—where demand dropped nearly 50% due to new EPA emissions regulations—Cummins maintained strong growth through its diversified market approach. Sales in regions outside North America, including emerging markets, saw significant gains, helping offset the decline in the domestic market. This strategic diversification ensured that the company remained on track for double-digit growth overall.
Cummins’ 2007 emission-compliant engines, featuring CEGR and DPF technology, were well-received by large fleet operators in North America. As a result, the company’s market share in the region nearly doubled, reaching almost 40%. This success reinforced Cummins’ reputation for innovation and reliability.
Tim Solso, Chairman and CEO of Cummins, emphasized the company’s resilience in 2007. “Despite local challenges and market fluctuations, we delivered excellent results,†he said. He also highlighted the company’s strong return on investment, with an average of 55% over the past five years, underscoring its long-term value to shareholders.
Internationally, Cummins’ operations outside the U.S. accounted for 54% of total sales in 2007. Emerging markets such as China, India, and Russia showed particularly strong performance. In China, sales exceeded $1.7 billion—a 50% increase from 2006—and several key projects advanced significantly.
Notable developments included the approval of Beijing Foton Cummins Engine Co., Ltd., a joint venture focused on producing next-generation light diesel engines for various vehicle types. A 13-liter electric engine project with Dongfeng Motor was also progressing well, with plans for production in 2009. Additionally, Chongqing Cummins introduced new QSK series engines, while Xi’an Cummins began full-scale production with high localization rates.
Cummins Fuel Systems also made progress, with a new plant set to open in 2008. Meanwhile, preparations for local production of emission control systems were underway, aiming to meet European IV standards by 2008.
Overall, 2007 was a milestone year for Cummins, demonstrating its leadership in the global power solutions industry.
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