500 Jackson Street, Box 3005
Columbus, IN 47202
Cummins Inc. (NYSE – CMI) is the technology leader in the manufacture of diesel, natural gas, and hybrid engines in the U.S., working to improve fuel efficiency and reduce emissions. Cummins has outperformed peers in meeting the demand for lower-emissions engines, which has given the company a strong competitive advantage, as customers replace older vehicles to meet new Environmental Protection Agency (EPA) guidelines. Cummins’ technological solutions comply with both the stringent U.S. EPA 2010 emission standards and Tier 4 regulations, which take effect in 2011. The latter will require a 90 percent reduction in particulate matter and a 45 percent reduction in NOx emissions.
Emissions reduction has been a longstanding company priority; greater than half of the
$2.4 billion Cummins spent on R&D in the last 10 years has been invested in emission reduction technologies. Cummins is also working on developing biodiesel compatible products and currently offers engines that can function on a 20 percent blend of biodiesel versus the industry average of 5 percent. Further, Cummins is a member of the EPA Climate Leaders Program, an EPA industry-government partnership that works to develop comprehensive climate change strategies. As such, the company has committed to reducing its impact on the global environment by completing a corporate-wide inventory of its greenhouse gas emissions based on a quality management system, setting aggressive reduction goals, and annually reporting its progress to EPA.
While Cummins participates in the highly cyclical truck market that has been in the midst of a sharp downturn, truck purchases have been at unsustainably low levels with the average fleet age the oldest in two decades. Demand for new, more efficient engines will drive forward demand and market share gains – boding well for Cummins’ performance during the recovery.