Cummins To Cut Structural Costs In 2020; Launching New Power Business

(RTTNews) - At a meeting with analysts and shareholders, Mark Smith, CFO of Cummins Inc. (CMI), stated that the company is prepared for a cyclical slowdown in 2020. The company is taking steps to lower its cost base, while continuing to invest in the new products and services. The company plans to reduce structural costs by $250 million to $300 million in 2020.

Cummins Inc. is launching new Power business which includes existing electrification business as well as fuel cell and hydrogen production technologies. Tony Satterthwaite, President and COO, said that while battery and fuel cell technologies have been a clear focus of Cummins, its investments in diesel and natural gas platforms would continue in order to achieve improved fuel economy and lower emissions.

"While we do anticipate a shift towards electrification in some markets over the coming years, diesel will be the primary source of energy in commercial vehicles for many years to come," Satterthwaite said.