Cummins Inc. 2007 Sustainability Report

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“On any given day, there are approximately 12,000 people in our workforce involved in Six Sigma projects – helping us work smarter, produce better products and making our customers more successful.” George Strodtbeck The Company estimates this program generates savings of approximately 2 percent of annual revenue per year, while infusing quality into every process. Cummins also has expanded the program to include processes with customers, suppliers, distributors and corporate social responsibility with positive results. Cummins pursues cost leadership in other ways: through global sourcing, global research and development access, sharing development costs with original equipment manufacturer (OEM) partners and technical productivity, including the use of computer design and modeling instead of building expensive physical prototypes. Profitable growth The Company will continue to focus its growth initiatives on related businesses where it can use its existing investments in products or technology, leading brand names or market presence to establish a competitive advantage. The focus is on ventures that complement its capitalintensive and cyclical core businesses, for example, the production of light-duty diesel engines in an existing Cummins facility that will introduce Cummins to a new consumer customer base. Creating shareholder value Return on capital—specifically return on average net assets (ROANA) and return on equity (ROE)—is our primary measure of financial performance. Each of our business segments uses ROANA targets and the Company, as a whole, has an ROE target. 8 Cummins Inc. 2007 Sustainability Report Cummins has dramatically improved its return on capital in recent years; for example, since 1999 (the last peak in the heavy-duty truck cycle), ROE has increased from 10 percent to 20.8 percent in 2007. ROANA in 2007 was 28.9 percent. Complementary businesses that work together to create value Increasingly, Cummins looks for ways to leverage the synergies among its four business segments. These synergies capitalize on shared capabilities including technology, distribution systems, common customers (cross selling), joint venture partners for global growth and cost reduction through the larger scale of shared services. Creating the right environment At Cummins, creating the right environment for success means an inclusive, learning environment that is reinforced by a performance ethic that attracts, develops and retains high-quality talent. We measure our success through strategic skill and competency mapping, leadership development outcomes and participation in tailored individual development and training programs.
Who We Are Cummins roots are planted in soil nourished by innovation, persistence and a commitment to community. Founded in Columbus, Ind., in 1919 as the Cummins Engine Company, for its namesake Clessie Lyle Cummins, the fledgling firm was among the first to see the commercial potential of an unproven engine technology invented two decades earlier by Rudolph Diesel. The Company has grown to be a global power leader. Today, half of Cummins 37,800 employees and half the Company’s sales are from outside the United States. Since the early part of the decade, we have reshaped the Company into what we are calling a “New Cummins” – a company that is less cyclical, more diversified, more results-oriented and committed to turning a greater share of its sales into profits. We have adapted to changes in the competitive landscape by vertically integrating through partnerships with Cummins employees share information about their award-winning projects at the annual Six Sigma Expo. original equipment manufacturers (OEMs) and establishing ourselves as a global technology leader in a constantly changing emissions environment. All Cummins businesses and products are united under the Cummins name, with the Company’s earliest historical colors, red and black, representing it along with the large Cummins “C” in contrasting white or black. Our brand is the sum total of all our years in business. From the beginning, when the Company’s founders first stood behind the products they sold to the ongoing growth of our diversified business, Cummins has maintained a reputation for integrity. In terms of a brand, that translates into a single vision: dependability. We want stakeholders to know they can depend on Cummins. And we want employees to be able to unify around the Cummins brand to create value and a competitive advantage. Our Profile 9
Page 1: Cummins Inc. 2007 Sustainability Re
Page 4 and 5: Cummins Inc. About this Report The
Page 6 and 7: “Corporate responsibility and wor
Page 8 and 9: The power of our Company is not jus
Page 12 and 13: As of the end of 2007, Cummins was
Page 14 and 15: “Cummins can create an advantage
Page 16 and 17: Cummins uses a voice of the custome
Page 18 and 19: Cummins has launched a focused effo
Page 20 and 21: We continuously work with customers
Page 22 and 23: “We rely on our core values to gu
Page 24 and 25: Going back to its earliest days, Cu
Page 26 and 27: “Cummins has created an environme
Page 28 and 29: In 2007, Internal Audit issued more
Page 30 and 31: “Cummins leverages the expertise
Page 32 and 33: The primary mission of the Board of
Page 34 and 35: “Every employee at Cummins should
Page 36 and 37: As a result of our outstanding tech
Page 38 and 39: “We believe we can’t be success
Page 40 and 41: Having the ability to meet a broade
Page 42 and 43: Cummins has worldwide experience an
Page 44 and 45: “We believe the right technology
Page 46 and 47: “We take pride in our work and ar
Page 48 and 49: “Being a lowcost producer is esse
Page 50 and 51: Emission Solutions offers exhaust a
Page 52 and 53: “The best way to have great emplo
Page 54 and 55: “Cummins’ future is based on ho
Page 56 and 57: The Cummins Science and Technology
Page 58 and 59: By the end of 2007, Cummins had 42
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“I am honored to work at a compan
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Manufacturing Operations For perspe
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Materials Category 2004 2005 2006 M
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“Working for a winning organizati
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Significant emissions reductions ha
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Ozone Depleting Substances In 1995,
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“We view our vendors and supplier
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Our goal is to make Cummins a best-
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“The safety and well-being of our
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Entities are recognized at four dis
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“Creating a great place to work i
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“Every person must be treated wit
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“Being a successful company means
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Cummins Named Among Top 50 Companie
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“At Cummins, we strive to foster
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Cummins’ focus on corporate respo
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From raking leaves to reading to ch
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“Six Sigma is an indispensable im
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The Cummins Foundation Report Cummi
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The Cummins Foundation - 2007 Grant
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Grantee Community Purpose Amount Pa
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Cummins Inc. 500 Jackson Street Col
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Cummins Inc. 2007 Sustainability Report

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