Stock Markets
Cummins secures $75 million for electric vehicle tech
COLUMBUS, Ind. – Cummins Inc . (NYSE: NYSE:), a global power leader, has announced a significant expansion in its electric vehicle (EV) capabilities with a $150 million investment plan. The company will convert an existing engine plant in Columbus, Indiana, to produce battery electric vehicle (BEV) components, supported by a $75 million federal grant, the largest ever received by Cummins.
The investment will be matched by Cummins, totaling $150 million, which will go towards revamping approximately 360,000 square feet of the Columbus Engine Plant (CEP). This initiative is expected to add around 250 full-time jobs, offering current employees opportunities to transition into these new roles over time.
The grant, part of the Inflation Reduction Act appropriations, underscores Cummins’ commitment to its Destination Zero strategy, aiming for a zero-emissions future. The company is set to manufacture battery packs, electric powertrain systems, and other BEV components for its zero-emissions business segment, Accelera by Cummins.
Amy Davis, President of Accelera by Cummins, emphasized the importance of partnerships with the government and industry to expedite the transition to clean energy. The CEP will dedicate nearly half of its 1.42 million square feet to zero-emissions manufacturing, with the goal of reducing greenhouse gas emissions by approximately 104 million metric tons of carbon dioxide by 2030.
Cummins’ CEO, Jennifer Rumsey, highlighted the significance of the investment, not only to Cummins’ innovation and environmental goals but also to the economic and social vibrancy of Columbus, Indiana. The Mayor of Columbus, Mary Ferdon, also praised the company’s commitment to clean energy and the positive impact on the local workforce and technology sector.
The project represents a crucial step for Cummins in advancing electrification and strengthening domestic battery supply chains in the United States. This investment is based on a press release statement and aims to position Cummins at the forefront of the evolving market for commercial EV solutions.
In other recent news, the Biden administration has announced a $1.1 billion grant to General Motors (NYSE:) and Stellantis (NYSE:) for electric vehicle (EV) production conversion. This initiative is part of a broader $1.7 billion investment aimed at transforming 11 plants across eight states. The funding will facilitate the production of 1 million EVs annually, retain 15,000 jobs, and create 3,000 new positions.
In other developments, Cummins Inc. has increased its quarterly common stock cash dividend by 8.3% from $1.68 to $1.82 per share, marking the 15th consecutive year of dividend growth. Cummins reported earnings of approximately $735 million on sales of $34.1 billion in 2023. Citi recently initiated coverage on Cummins with a Buy rating, citing growth outlook and strategic moves.
Furthermore, Cummins, in collaboration with Daimler (OTC:) Trucks & Buses US Holding LLC and PACCAR (NASDAQ:), formed a joint venture named Amplify Cell Technologies. The venture aims to enhance zero-emissions technology and is set to commence production in a 21-gigawatt hour battery factory in 2027.
Finally, Cummins announced the retirement of its Senior Vice President, Tony Satterthwaite, set for September 2024. These are the recent developments in the company’s activities.
InvestingPro Insights
Cummins Inc. (NYSE: CMI) is demonstrating a robust commitment to growth and stability in the electric vehicle (EV) sector with a historic $150 million investment to expand its EV capabilities. This move is not just a nod to innovation and environmental responsibility but also an indicator of the company’s strong financial health and strategic positioning.
Reflecting on Cummins’ financial metrics, the company’s market capitalization stands at a solid $38.2 billion, showcasing its substantial presence in the industry. The adjusted price-to-earnings (P/E) ratio for the last twelve months as of Q1 2024 is at 15.8, which may appeal to investors looking for reasonable valuation in the machinery sector. The company’s revenue growth over the last twelve months is impressive at 12.85%, indicating a positive trajectory in financial performance.
InvestingPro Tips highlight Cummins’ track record of dividend reliability, with the company raising its dividend for 18 consecutive years and maintaining payments for 54 years straight. This consistent return to shareholders is a testament to Cummins’ financial stability and prudent management. Moreover, analysts predict profitability for the company this year, aligning with its strategic investments and growth initiatives.
Cummins also operates with a moderate level of debt, which is crucial for maintaining financial flexibility, especially when venturing into new markets like EV components manufacturing. This prudent financial management is essential for the company as it navigates the capital-intensive transition towards a zero-emissions future.
For readers looking to delve deeper into Cummins’ financial health and future prospects, InvestingPro offers a wealth of additional insights. There are currently 8 more InvestingPro Tips available, which can provide valuable guidance for informed investment decisions. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, granting access to these exclusive insights and more.
The transition to clean energy is a critical move for Cummins, and with strong financial indicators and strategic investments, the company is well-positioned to thrive in the burgeoning EV market. As Cummins continues to innovate and expand, its financial metrics and InvestingPro Tips will be key factors for investors to watch.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By Maggie Fick and Ahmed Aboulenein
WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.
“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.
The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment.
The Trump transition team did not immediately respond to a Reuters request for comment.
The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.
Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA.
Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.
Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.
A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.
Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.
Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems.
“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.
U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.
Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.
It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.
This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.
Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.
This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.
Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.
National homebuilder ranked No. 12 on inaugural list ranking companies based on trust
SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12 out of 300 companies across all industries.
“There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”
Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.
Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.
In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including Taylor Morrison, Esplanade and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted ® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.
For more information about Taylor Morrison, please visit www.taylormorrison.com.
CONTACT:
media@taylormorrison.com
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
