Columbus-based Cummins Inc. (NYSE: CMI) has announced a program to buy back $1 billion in shares. The global engine manufacturer launched a separate $1 billion repurchasing initiative last year. The new one will begin when the other is complete.
Cummins officials say the effort is consistent with its larger goals of returning 50 percent of operating cash flow to shareholders.
In a meeting with shareholders, Chief Executive Officer Tom Linebarger, Chief Operating Officer Rich Freeland and Chief Financial Officer Pat Ward detailed some of the challenges next year, including an expected five percent dip in revenue compared to 2015. The leadership also outlined plans to cut costs and "drive operational improvements" in the face of "challenging conditions in a number of important markets."
Cummins executives say the company intends to invest in "organic growth opportunities, partnerships and acquisitions."
Linebarger says "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. 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."
The company currently employs more than 54,500 in approximately 190 countries and territories.