COLUMBUS, IN — The Cummins Inc.’s Board of Directors has authorized the company to acquire an additional 2 million shares of Cummins common stock. In June, Cummins completed the purchase of $100 million worth of common stock that began in September 2005. The company has approximately 52 million shares outstanding.
“Cummins is committed to creating value for its shareholders,” said Tim Solso, Cummins chairman and chief executive officer. “These actions are indicative of the board’s confidence in the company’s continued ability to produce strong financial returns for all its stakeholders.”
Since 2003, Cummins has produced an average annual total return (share price appreciation plus dividend) of approximately 50 percent – triple that of both the S&P 500 and the company’s peer group. Cummins stock closed at an all-time high of $122.25 on June 30 and has appreciated more than 30 percent since the beginning of 2006.
The board also approved a 20 percent increase in the quarterly cash dividend paid on common stock to 36 cents per share, up from 30 cents per share. The dividend is payable on September 1 to shareholders of record on August 18.
For more information about Cummins, go to: www.cummins.com .
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