COLUMBUS, IND., December 11 /CNW/ - The Cummins Board of Directors today
declared a two-for-one split of Cummins Inc. (NYSE: CMI) common stock, payable
Jan. 2 to shareholders of record as of Dec. 21, 2007. This is the Company's
second stock split in 2007, following a two-for-one split in April.
As a result of the stock split, each Cummins' shareholder will receive
one additional share of stock for each share owned on the record date. Since
there will be twice as many shares after the split, each share will be worth
half of what it was worth immediately prior to the split. The overall value of
a stockholder's investment remains the same.
The total amount of cash dividend payments with respect to the shares
will remain unchanged as a result of the split, but the dividend will be
proportionately adjusted to half the pre-split amount on a per-share basis.
"2007 has been one of the best years in Cummins' history, reflecting our
diversified portfolio of businesses and our growing market share around the
world," said Tim Solso, Cummins Chairman and CEO. "This second stock split in
2007 is yet another sign of our confidence in the Company's operating
performance and its ability to grow profitably in the future."
Today, the Board also authorized the Company to repurchase another $500
million in shares of Cummins stock. Over the last 25 months, the Company has
repurchased approximately six million shares at a total cost of $500 million.
"We are sharing our growing value with shareholders, not just through our
share price appreciation, which has shown a compound annual growth rate of
approximately 50 percent over the last four years, but also through our stock
repurchase plans and sustainable and growing dividends," Solso said.
Year-to-date Cummins stock price has more than doubled. The Company's
dividend has increased nearly 67 percent since the summer of 2006.
Cummins had approximately 102 million shares of common stock outstanding
as of September 30, 2007. Upon completion of the split, the Company will have
approximately 204 million shares of common stock outstanding.
Cummins Inc., a global power leader, is a corporation of complementary
business units that design, manufacture, distribute and service engines and
related technologies, including fuel systems, controls, air handling,
filtration, emission solutions and electrical power generation systems.
Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more
than 160 countries through its network of 550 Company-owned and independent
distributor facilities and more than 5,000 dealer locations. Cummins reported
net income of $715 million on sales of $11.4 billion in 2006. Press releases
can be found on the Web at www.cummins.com.
Information provided in this release that is not purely historical are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding the company's
expectations, hopes, beliefs and intentions on strategies regarding the
future. It is important to note that the company's actual future results could
differ materially from those projected in such forward-looking statements
because of a number of factors, including, but not limited to, general
economic, business and financing conditions, labor relations, governmental
action, competitor pricing activity, expense volatility and other risks
detailed from time to time in Cummins Securities and Exchange Commission
For further information:
For further information: Cummins Inc. Mark Land, Director of Public
Relations, 317-610-2456 firstname.lastname@example.org