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About Cummins Inc.

Cummins makes diesel- and natural gas-powered engines for the heavy- and mid-duty truck, RV, automotive, and industrial markets, as well as for the marine, rail, mining, and construction industries. In addition to its flagship Engine segment, other business segments include Components (filtration products and fuel systems), Power Systems (vehicle and residential generators), New Power (electric and hybrid powertrain systems), and Distribution (product distributors and servicing). Cummins' major customers include OEMs Chrysler, Daimler, Ford, Komatsu, PACCAR, Navistar, and Volvo. More than 55% of the company's total sales come from the US. The company traces its historical roots back to 1919, when it was founded by Clessie Cummins.

Operations

Cummins' Engine segment is its largest, accounting for more than one-third of total sales. It makes a broad range of diesel- and natural gas-powered engines under the Cummins brand, as well as other brand names, for the heavy- and medium-duty truck, bus, recreational vehicle, and light-duty automotive markets.

The Distribution and Components segments each contribute about a quarter of total sales. Distribution comprises a network of approximately 600 company-owned and independent distributors that serve 190 countries worldwide. The Components segment manufactures products that are complementary to commercial diesel applications including more than 8,300 filtration products, some branded as Fleetguard. Other products within this segment include turbo technologies for air handling in engines and exhaust after-treatment technologies. It also offers new, used, and remanufactured fuel systems.

Power Systems represents about 15% of revenue and sells power products such as alternators, transfer switches, and controls. It serves the commercial and consumer markets as well as military organizations. Brands include AVK, and Stamford (alternators).

The New Power segment designs, manufactures, sells and supports electrified power systems ranging from fully electric to hybrid along with innovative components and subsystems, including battery, fuel cell and hydrogen production technologies.

Geographic Reach

Cummins' main domestic operating facilities are located in Columbus, IN (headquarters); Memphis, TN; Walton, KY; and Lakewood, NY. Key international locations reside in Belgium, Brazil, China, India, Mexico, Russia, South Africa, the UK, and the UAE. The US generates more than 55% of its total sales.

Sales and Marketing

Cummins has a large geographic reach and serves customers through a network of 600 wholly-owned and independent distributor locations and more than 7,600 dealer locations spanning about 190 countries and territories. Major customer PACCAR accounts for more than 15% of the company's net sales.

Financial Performance

Sales decreased 1% holding the $20 million-mark with $23.6 billion in 2019 (2018 revenue was $23.8 billion). The decrease was due to the decrease of their Engine segment with about $510 million and $166 million decrease in power systems segment.

Profits increased in 2019 to $2.3 billion, driven primarily by increased gross margin, lower variable compensation expenses and gains on corporate owned life insurance, partially offset by restructurings, higher research, development and engineering expenses and lower equity, royalty and interest income from investees.

Cash at the end of fiscal 2018 was $1.3 billion, down slightly ($66 million) from the prior year. Cash from operations contributed $3.2 billion to the coffers, while investing activities used $1.2 billion, mainly for capital expenditures. Financing activities used another $3.1 billion for dividends to stockholders and the company's stock repurchase program.

Strategy

Cummins design and/or manufacture their strategic components used in or with their engines and power generation units, including cylinder blocks and heads, turbochargers, connecting rods, camshafts, crankshafts, filters, alternators, electronic and emission controls, automated transmissions and fuel systems. Other important elements include working with suppliers to measure and improve their environmental footprint; selecting and managing suppliers to comply with their supplier code of conduct; and assuring their comply with Cummins' prohibited and restricted materials policy.

Mergers and Acquisitions

Cummins acquired Hydrogenics, a provider of fuel cell technologies, in 2019. The addition of Hydrogenics boosts Cummins' clean fuel operations with both fuel cell and hydrogen generation capabilities and allows it to offer integrated fuel cell solutions to customers.

Company Background

Chauffeur Clessie Cummins believed that Rudolph Diesel's cumbersome and smoky engine could be improved for use in transportation. Borrowing money and work space from his employer, Columbus, Indiana banker W.G. Irwin, Cummins founded Cummins Engine in 1919. Irwin invested more than $2.5 million in the company and in the mid-1920s, Cummins produced a mobile diesel engine. Truck manufacturers were reluctant to switch from gas to diesel, so Cummins used publicity stunts, such as racing in the Indianapolis 500, to advertise his engine.

The company was profitable by 1937, the year Irwin's grandnephew, Irwin Miller, took over. During WWII the Cummins engine was used in cargo trucks. Sales jumped from $20 million in 1946 to more than $100 million by 1956. That year Cummins started its first overseas plant in Scotland. It bought crankshaft, camshaft, and piston and valve supplier Atlas Crankshafts in 1958. By 1967 it had 50% of the diesel engine market.

Cummins Inc.

500 Jackson St
Columbus, IN 47201-6258
Phone: 1 (812) 377-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CMI
Stock Exchange: , NYSE
President and COO: Richard J. Freeland
Chairman and CEO: N. Thomas Linebarger
VP and CFO: Patrick J. Ward
Employees (This Location): 277
Employees (All Locations): 61,615

Major Office Locations

Columbus, IN

Other Locations

Anchorage, AK
Fairbanks, AK
Birmingham, AL
Mobile, AL
Springdale, AR
Avondale, AZ
Tucson, AZ
Arcata, CA
Bakersfield, CA
Bloomington, CA
Downey, CA
El Cajon, CA
Fresno, CA
Irvine, CA
Montebello, CA
Redding, CA
San Leandro, CA
Ventura, CA
West Sacramento, CA
Broomfield, CO
Grand Junction, CO
Henderson, CO
Rocky Hill, CT
Wilmington, DE
Fort Myers, FL
Jacksonville, FL
Miami Lakes, FL
Miramar, FL
Ocala, FL
Orlando, FL
Riviera Beach, FL
Tampa, FL
Albany, GA
Atlanta, GA
Augusta, GA
College Park, GA
Gainesville, GA
Savannah, GA
Kapolei, HI
Ankeny, IA
Cedar Rapids, IA
Des Moines, IA
Lake Mills, IA
Boise, ID
Hodgkins, IL
Normal, IL
Rock Island, IL
Columbus, IN
Elkhart, IN
Evansville, IN
Fort Wayne, IN
Indianapolis, IN
Mishawaka, IN
Seymour, IN
Colby, KS
Garden City, KS
Park City, KS
Hazard, KY
Louisville, KY
Walton, KY
Bossier City, LA
Lake Charles, LA
New Orleans, LA
Dedham, MA
Springfield, MA
Glen Burnie, MD
Scarborough, ME
Clinton Township, MI
Dearborn, MI
Gaylord, MI
Grand Rapids, MI
Iron Mountain, MI
Negaunee, MI
New Hudson, MI
Saginaw, MI
Alexandria, MN
Duluth, MN
Fridley, MN
Minneapolis, MN
White Bear Lake, MN
Columbia, MO
Fenton, MO
Joplin, MO
Kansas City, MO
Saint Louis, MO
Sikeston, MO
Springfield, MO
Billings, MT
Missoula, MT
Battleboro, NC
Charlotte, NC
Greensboro, NC
Kenly, NC
Pineville, NC
Whitakers, NC
Fargo, ND
Grand Forks, ND
Minot, ND
Kearney, NE
Omaha, NE
Kearny, NJ
Albuquerque, NM
Farmington, NM
Hobbs, NM
Elko, NV
North Las Vegas, NV
Sparks, NV
Albany, NY
Bronx, NY
Cheektowaga, NY
Horseheads, NY
Lakewood, NY
Syracuse, NY
Grove City, OH
Hilliard, OH
West Chester, OH
Oklahoma City, OK
Tulsa, OK
Coburg, OR
Medford, OR
Portland, OR
Belle Vernon, PA
Bristol, PA
Harrisburg, PA
Pittsburgh, PA
Tunkhannock, PA
Charleston, SC
Columbia, SC
Ladson, SC
Loris, SC
Summerville, SC
Sioux Falls, SD
Chattanooga, TN
Cookeville, TN
Knoxville, TN
Memphis, TN
Nashville, TN
Amarillo, TX
Austin, TX
Dallas, TX
El Paso, TX
Fort Worth, TX
Houston, TX
Odessa, TX
San Antonio, TX
Salt Lake City, UT
Vernal, UT
Chesapeake, VA
Cloverdale, VA
Richmond, VA
Pasco, WA
Spokane, WA
Sumner, WA
Tumwater, WA
Yakima, WA
De Pere, WI
Eau Claire, WI
Mineral Point, WI
Neillsville, WI
Oak Creek, WI
Schofield, WI
Stoughton, WI
Waterford, WI
Cross Lanes, WV
Fairmont, WV
Gillette, WY
Rock Springs, WY
Shanghai, China
Bardhaman, India
Bengaluru, India
Bhubaneswar, India
Bilaspur, India
Chandigarh, India
Chennai, India
Coimbatore, India
Daman, India
Gurgaon, India
Guwahati, India
Hubli, India
Hyderabad, India
Jaipur, India
Khammam, India
Kolkata, India
Lucknow, India
Madurai, India
Mathura, India
Mumbai, India
Nagpur, India
Navi Mumbai, India
New Delhi, India
Panaji, India
Pune, India
Raipur, India
Ranchi, India
Satara, India
Secunderabad, India
Sidhi, India
Thane, India
Vadodara, India
Aprilia, Italy
Carrara, Italy
Campo Grande, Brazil
Cuiaba, Brazil
Guarulhos, Brazil
Itatiba, Brazil
Macae, Brazil
Salvador, Brazil
Sao Jose Do Rio Preto, Brazil
Moscow, Russia
Darlington, England
Daventry, England
Exeter, England
Huddersfield, England
Iver, England
Leeds, England
Peterborough, England
Wellingborough, England
Herrieden, Germany
Marktheidenfeld, Germany
Schkeuditz, Germany
Aberdeen, Scotland
Glasgow, Scotland

Competitors