COLUMBUS, Ind. -- Cummins Inc. has reported record profits for all of 2010, in addition to record quarterly sales and profits for the fourth quarter. Cummins said the record-setting figures were the result of the strength of significant growth in key international markets and improved productivity in its global manufacturing operations.

Fourth quarter sales were $4.14 billion, up 22 percent from $3.40 billion during the same period in 2009. Net income attributable to Cummins Inc. was $362 million ($1.84 per share) compared to $270 million ($1.36 per share) in the fourth quarter 2009.

For the fourth quarter, the company said its Engine, Components and Distribution segments all reported record sales and segment EBIT. The Power Generation segment, which was affected by the recession later than the company’s other business segments, continued to rebound and reported strongly higher sales and segment EBIT than during the same period in 2009.

For the full year, sales were $13.23 billion, up 22 percent from $10.8 billion in 2009. EBIT of $1.66 billion, or 12.5 percent of sales, increased 114 percent from $774 million, or 7.2 percent of sales excluding restructuring and other charges, in 2009.

Net income attributable to Cummins Inc. was $1.04 billion ($5.28 per share) from $428 million ($2.16 per share) in 2009.

Full-year 2010 sales were second only to 2008, the company said, while EBIT and net income attributable to Cummins Inc. were company records. Three of the company’s four business segments – Engine, Components and Distribution – reported full-year record earnings, while Power Generation also posted strong sales and profit gains from the previous year.

Cummins said its strong performance in 2010 came despite a significant decline in its important North American truck engine markets, which were affected by the continued weakness in the U.S. economy and a change in emissions standards. Engine shipments to the North American heavy-duty truck market fell 61 percent and 44 percent to the North American medium-duty truck and bus markets.

Those decreases were more than offset by growth in international markets, particularly China, India and Brazil, and the company said it continues to benefit from actions taken over the past two years to improve the productivity of its manufacturing operations around the world.

Sales in China and Brazil increased by more than 70 percent, while sales in India rose 37 percent for the year. Cummins’ total international sales increased by 48 percent from 2009 and accounted for 64 percent of the Company’s total sales in 2010.

“2010 was the best year in the company’s history,” said Chairman and CEO Tim Solso. “The fact that we were able to achieve record profitability in the face of a sharp decline in large North American on-highway markets speaks to the global strength of our business and the work we did to keep the Company strong during the recession.

“Given our strong balance sheet, the expected recovery of our North American markets and the global growth opportunities in front of us, we are forecasting further significant growth in 2011 and beyond.”
Based on its current forecasts, Cummins expects sales to grow to $16 billion in 2011.