Cummins Shares Optimism for Long-Term Growth Prospects With Investment Community

    --  Company targeting $20 billion in sales and 12.5 percent EBIT margin in
        2014

NEW YORK--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) is well positioned to take advantage of a number of long-term economic and market trends and is optimistic about its prospects for sustained profitable growth, members of senior leadership told investment analysts today.

Speaking at a meeting at the New York Stock Exchange, Cummins Chairman and Chief Executive Officer Tim Solso; President and Chief Operating Officer Tom Linebarger; Chief Financial Officer Pat Ward and Chief Technical Officer John Wall shared the Company's outlook with approximately 130 Wall Street analysts and shareholders.

In addition to highlighting the trends and company strengths that are expected to fuel a period of significant growth starting in 2011, Company leaders set a target of $20 billion sales with Earnings Before Interest and Taxes of 12.5 percent of sales in 2014. The Company also said it expects to surpass its previous peak sales and earnings, set in 2008, in 2012.

"We still have some challenges ahead of us, especially in the first half of this year, but I am extremely optimistic about the future," Solso said. "We are in the best financial condition in the Company's history and have an experienced leadership team that knows what it takes to successfully manage the Company during both difficult times and times of significant growth.

"We also are committed to investing in the business so that we can take advantage of several promising long-term trends that we expect to drive profitable growth for Cummins well into the future."

Those trends include:

    --  Rapidly tightening diesel engine emissions standards around the world
        and emerging regulation of commercial vehicle fuel economy that will
        allow Cummins to leverage its position as a technical leader in
        emissions reduction and fuel efficiency, resulting in increased engine
        and components sales.
    --  The rising price of energy is expected to further increase the demand
        for fuel-efficient diesel engines, while the growing gap between the
        supply and demand for electricity in developing economies will benefit
        the Company's power generation business.
    --  Increasing economic globalization will continue to benefit Cummins due
        to the Company's competitive position in large and growing international
        markets such as China, India and Brazil and its worldwide distribution
        network.
    --  Increased infrastructure investment in many developing countries,
        spurred by government stimulus spending, will bolster engine and power
        generation demand in many of Cummins' markets.

"We have managed the company very conservatively during the downturn, and as a result have lived up to our commitment to shareholders to produce a solid profit and generate significant cash in an extremely weak economic environment," Linebarger said. "That work will allow us to emerge from the recession an even stronger company and one that is poised for growth."

Linebarger told analysts that the Company's strengths in a number of key areas would be critical to Cummins' future success. Among them are:

    --  Leadership in key engine technologies and subsystems.
    --  The complementary nature of the Company's four business segments, which
        allows Cummins to fully leverage its capabilities and pursue a broad
        range of growth opportunities.
    --  The Company's large global footprint and leadership position in many of
        the markets in which it competes.
    --  Cummins' proven ability to successfully manage complex business
        partnerships with some of the leading companies in the world. Cummins
        currently has 56 joint ventures in 18 countries and owns a financial
        stake in 85 percent of its global distribution network.

Cummins management also said it is pleased with the Company's performance in the early part of 2010. Additional information, as well as an update on the Company's full-year outlook, will be provided when Cummins reports its first quarter results on April 27.

Editors' note: An audio webcast of the analysts meeting, along with the presentation materials shared at the meeting, is available on www.cummins.com. A link to the webcast and materials can be found on the home page and from the Investor Relations section of the web site.

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. The Company reported net income attributable to Cummins Inc. of $428 million on sales of $10.8 billion in 2009. Press releases can be found on the Web at www.cummins.com.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.

    Source: Cummins Inc.

Released March 16, 2010