The Board of Directors of Cummins Inc. (NYSE: CMI) today approved an increase in the Company’s quarterly cash dividend on common stock of 25 percent to 50 cents per share from 40 cents per share.
The dividend is payable on Sept. 1, 2012 to shareholders of record on August 22, 2012.
“Today’s announcement of a dividend increase reinforces our confidence in the long-term prospects for the Company and continues our trend of increasing returns to shareholders,” said Tom Linebarger, Chairman and Chief Executive Officer. “With strong cash flow and low levels of debt we are able to fund investments in our future growth and increase dividends to shareholders,” continued Linebarger.
The Company also lowered its full-year revenue outlook for 2012 and now expects 2012 revenues to be in line with 2011 compared to the Company’s previous guidance of an increase of 10 percent. Based on preliminary results, and subject to normal quarterly financial statement closing procedures, second quarter revenues are expected to be approximately $4.45 billion. The Company does not provide quarterly revenue or earnings guidance.
“We have seen demand in some markets weaken recently as growth in the global economy has slowed,” continued Linebarger. “Order trends in the U.S. for trucks and power generation equipment have softened and demand in Brazil, China and India is not improving as we had previously expected. Our revenues have also been negatively impacted by the appreciation of the U.S. dollar against a number of currencies. We are making adjustments within our business to manage costs, while continuing to fund our critical growth programs and will continue to focus on execution and improving operating margins.”
Details of second quarter results and the updated full year outlook will be covered during the previously scheduled second quarter earnings conference at 10 a.m. EDT on July 31, 2012. The Company will not be making any further statements about either the second quarter or the full year until the second quarter earnings conference.