Cummins Inc. (NYSE:CMI) announced that the company is reorganizing its manufacturing operations, as part of its plan to adjust to weak global demand for power generation equipment. These moves will help best position the company for long-term success.
Over the next 24 months, Cummins plans to relocate its generator set assembly operations located in Kent, U.K. to Daventry, U.K., Phaltan, India and Wuhan, China. The footprint of the Cummins Kent site will be reduced as it is transformed into an important regional distribution and logistics center.
“By relocating our U.K. generator assembly operations to other locations, we can better balance our capacity with demand, and leverage our global supply chain strengths,” said Rich Freeland, Chief Operating Officer, Cummins Inc. “We believe that making these changes will improve our manufacturing capabilities and processes, enhance our customer service, and generate efficiencies by further integrating our power generation and engine supply chains.”
For nearly 50 years, Cummins has had operations in the U.K. and currently has eight manufacturing facilities and 4,500 employees across 23 sites in 17 cities.
“Cummins remains committed to our strong presence in the U.K.,” Freeland continued, “We are working to implement changes across the globe that create a stronger and more competitive Cummins and underscore our mission and values.” (Original Source)
Shares of Cummins closed last Friday at $97.01. CMI has a 1-year high of $146.13 and a 1-year low of $79.88. The stock’s 50-day moving average is $89.42 and its 200-day moving average is $103.56.
On the ratings front, Cummins has been the subject of a number of recent research reports. In a report issued on February 5, Deutsche Bank analyst Vishal Shah reiterated a Hold rating on CMI, with a price target of $93, which represents a slight downside potential from current levels. Separately, on February 4, William Blair’s Lawrence De Maria reiterated a Hold rating on the stock and has a price target of $95.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vishal Shah and Lawrence De Maria have a total average return of -24.5% and -7.6% respectively. Shah has a success rate of 21.7% and is ranked #3559 out of 3579 analysts, while Maria has a success rate of 30.8% and is ranked #3040.
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.