Board authorizes new $1 billion share repurchase program
At a meeting with analysts and shareholders today, members of the senior leadership team of Cummins Inc. (NYSE: CMI), a global power leader, shared their plans to generate profitable growth and strong returns on capital to drive shareholder value. In addition, the Board of Directors of Cummins approved a new $1 billion share repurchase program, effective today, to commence upon the completion of the existing $1 billion share repurchase program, which was approved in July 2014. The approval of the new share repurchase program is consistent with the Company’s plans to return 50 percent of Operating Cash Flow to shareholders.
At the meeting, Cummins Chairman and Chief Executive Officer Tom Linebarger, President and Chief Operating Officer Rich Freeland and Chief Financial Officer Pat Ward discussed plans to reduce costs and drive operational improvements as challenging conditions in a number of important markets are expected to reduce Cummins’ 2016 revenues by at least five percent from 2015. The Company also intends to make disciplined investments in organic growth opportunities, partnerships and acquisitions to continue its strong track record of delivering high returns.
“By making good strategic choices, adjusting our cost structure quickly and operating our business well during periods of weak demand, we will position Cummins for stronger performance when markets improve, as we have demonstrated in prior cycles,” said Tom Linebarger, Chairman and CEO. “We will add adjacent growth platforms through the successful launch of new products, by leveraging existing partnerships and pursuing acquisitions that offer high return on capital.”
Webcast information
A copy of the presentation used in the meeting and a replay of the webcast is available at investor.cummins.com.
