Cummins scores record high for four years in a row. International business outside the United States accounts for 54%, China increases by 50%.

Diversification strategy drives steady growth in performance

In 2007, Cummins's annual sales reached a record high of US$13 billion, a 15% increase from the 11.4 billion in 2006; EBITDA was US$1.23 billion (equivalent to 9.4% of sales), an increase of 4% over the previous year; The net profit was US$739 million, an increase of 3%.

Last year, the North American heavy truck market fell by nearly 50% due to the adverse effects of the new US Federal Environmental Protection Agency's new emissions regulations that took effect at the beginning of the year. However, Cummins's long-standing strategy of market application and geographic diversification has once again exerted enormous power - almost all of the company's North American heavy trucks The application market and overseas regional markets all maintained rapid growth, effectively countering the adverse effects of the weak North American market, and driving the company’s overall performance to continue to maintain double-digit growth.

At the same time, the reliability, durability, and fuel economy of Cummins's 2007 emissions standard based on a CEGR + particulate filter (DPF) are widely recognized by large fleet customers in North America. In 2007, Cummins’ market share in North American heavy-duty trucks nearly doubled from 2006 to nearly 40%.

Tim Solso, Cummins Chairman and Chief Executive Officer, said, "In the face of the unfavorable situation in local areas and market fluctuations, Cummins has achieved excellent operating results in 2007, again demonstrating Cummins as a diversified global power. The strength of leading companies is that the average return on our shareholders' investment over the past five years is as much as 55%."

In 2007, Cummins's overall performance was widely recognized by the industry. The industry's authoritative media - Diesel Progress magazine selected Cummins Inc. as the 2007 "Newsmaker of the Year". This is also Cummins's five-year history. The second time won this honor.

International business accounts for 54%, and emerging markets such as China, India and Russia are growing rapidly

In 2007, Cummins’ international business outside the United States accounted for 54% of company sales. Emerging markets represented by China, India, and Russia in particular performed the most.

Cummins India's sales in 2007 grew nearly 50% from 2006. In order to better meet market demand, Cummins India recently built and expanded five factories.

Cummins Russia and the CIS region’s sales in 2007 soared by 55% over 2006. The rapid growth of the Russian economy, especially the strong market demand in the field of oil and gas fields, mines and generators, is the biggest driving force behind Cummins’ business growth. Cummins's joint venture with Russia's largest commercial vehicle company, Kamaz, is preparing to put into operation the ISBe fully electronically controlled diesel engine.

Cummins’ sales in China exceeded US$1.7 billion in 2007, a 50% increase over 2006, and several major projects have made good progress, including:

1. Beijing Foton Cummins Engine Co., Ltd., a joint venture with Beiqi Foton, was officially approved by the National Development and Reform Commission in October last year. It is expected to produce Cummins' new-generation 2.8-liter and 3.8-liter inline four-cylinder high pressure direct injection light diesel engines in Beijing in 2009. Widely used in light trucks, pickup trucks, SUVs, MPV utility vehicles and small off-highway equipment, marking Cummins's formal entry into China's light diesel engine market with great potential.

2. The new generation of 13-liter fully electronically controlled heavy-duty truck engine developed in cooperation with Dongfeng Motor Co., Ltd. is being successfully established by the engine R&D center set up jointly by both parties. It is expected that the Dongfeng Cummins will be officially put into production in 2009.

3. Chongqing Cummins officially introduced Cummins' new-generation QSK series 19-liter and 38-liter all-electronically-controlled engine platforms in July last year, which will further enhance the competitiveness of Zhongkang in China's high-powered engine market.

4. Xi'an Cummins, a joint venture with Shaanxi Automobile Group, was formally put into operation in August last year, and the engine's localization rate of the joint venture was completed ahead of schedule.

5. Cummins Fuel Systems officially laid the foundation in June 2007, and it is expected that the new plant will be put into use in the second quarter of 2008.

6. The preparation for localization of Cummins Emissions Processing System progressed steadily last year. It is expected that the Beijing plant will start production of post-processors that meet Euro IV emission standards in 2008.

Cummins Key Financial Data for 2007

Cummins sales in 2007 by division

Cummins sales in 2007 by geographical area

Cummins sales and EBIT data for the past five years

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