Cummins Corp. announced its 2007 corporate financial report a few days ago. The company's sales and profits have reached new highs and maintained rapid growth for four consecutive years.
In 2007, Cummins’s annual sales reached a record high of US$13 billion, an increase of 15% from US$11.4 billion in 2006; EBITDA was US$1.23 billion (equivalent to 9.4% of sales), an increase of 4 over the previous year. %; net profit of 739 million US dollars, an increase of 3%.
In 2007, the North American heavy truck market was adversely affected by the new US Federal Environmental Protection Agency's new emissions regulations that took effect at the beginning of the year, and the overall decline was nearly 50%. However, Cummins’s long-standing strategy of market application and geographical diversification has once again exerted tremendous power. The company’s almost all application markets outside North America’s heavy trucks and overseas regional markets have maintained rapid growth, effectively countering the adverse effects of the weak North American market. Moreover, the overall performance of the company continues to maintain double-digit growth.
At the same time, the Cummins emissions-recirculation (CEGR) + particle filter (DPF) based on the 2007 emission standard series of engines, its reliability, durability and fuel economy, has been widely recognized by North American large fleet customers In 2007, Cummins’ market share in North American heavy trucks almost doubled from 2006 to nearly 40%.
Tim Solso, Cummins Chairman and Chief Executive Officer, stated that “In the face of the unfavorable situation in local areas and market fluctuations, Cummins has achieved excellent operating results in 2007, once again demonstrating Cummins’ leadership as a diversified global power. The strength of the company is that the average return on our shareholders' investment over the past five years is as much as 55%."
From the perspective of the international market, in 2007, Cummins’ international business outside the United States accounted for 54% of the company's sales. Emerging markets represented by China, India, and Russia in particular performed the most.
Cummins’ sales in China exceeded US$1.7 billion in 2007, a 50% increase over 2006, and good progress has been made in a number of major projects. Including: Beijing Foton Cummins Engine Co., Ltd., a joint venture with Beiqi Foton, was officially approved by the National Development and Reform Commission in October last year. It is expected to produce Cummins' new-generation 2.8-liter and 3.8-liter inline four-cylinder high pressure direct injection light diesel engines in Beijing in 2009. For light trucks, pickup trucks, SUVs, MPV utility vehicles and small off-highway equipment, marking Cummins's formal entry into China’s light diesel engine market with a huge potential; a 13-liter all-electric heavy-duty truck engine developed in cooperation with Dongfeng Motor Co., Ltd. The engine R&D center jointly established by the two parties is proceeding smoothly and is expected to be put into operation in Dongfeng Cummins in 2009. Chongqing Cummins officially introduced the Cummins new generation QSK series 19-liter and 38-liter all-electric engine platforms in July 2007, which will further enhance the re The competitive advantage in China's high-horsepower engine market; Xi'an Cummins, a joint venture with Shaanxi Automobile Group, was formally put into production in August 2007, and the engine localization rate of the joint venture was completed in advance; Cummins Fuel Systems officially laid the foundation in June 2007, and the new plant will Put into use in the second quarter of 2008; Local production preparation Adams emission treatment system at a steady pace in 2007, is expected to Beijing plant will be commissioned to meet the required standards after more than Europe Ⅳ processor in 2008.
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