CUMMINS ANNOUNCES STOCK BUYBACK
Cummins will repurchase another $1 billion in shares upon completion of the existing $1 billion buyback approved in July 2014. The program is consistent with the company’s plans to return 50 percent of operating cash flow to shareholders.
Cummins management said it 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 5 percent from 2015.
“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, chair/ 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.”