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.
(Reuters) -Private equity firm Insight Partners is on the brink of closing a new $10 billion-plus fund, roughly half the amount originally targeted, the Financial Times reported on Sunday, citing five people with knowledge of its plans.
Insight will not formally close its 13th fund until early next year, the report said, adding that the final figure may be closer to $12 billion.
Insight Partners declined to comment on the report.
The report said Insight is using a private equity-style structure to sell more than $1 billion worth of stakes in start-ups and to free up cash to return to investors.
One of the start-ups is Israeli cybersecurity firm Wiz, which had called off a $23 billion deal with Google parent Alphabet (NASDAQ:) in July, the report said.
New York-based Insight raised $20 billion for its 12th flagship fund in 2022, aiming to ramp up investments in software and technology companies.
JERUSALEM (Reuters) -Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis who control northern Yemen, after they reached central Israel with a missile on Sunday for the first time.
Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2,040 km (1270 miles) in just 11 1/2 minutes.
After initially saying the missile had fallen in an open area, Israel’s military later said it had probably fragmented in the air, and that pieces of interceptors had landed in fields and near a railway station. Nobody was reported hurt.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact at around 6:35 a.m. local time (0335 GMT), sending residents running for shelter. Loud booms were heard.
Reuters saw smoke billowing in an open field in central Israel.
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a “heavy price” for attacks on Israel.
“Whoever needs a reminder of that is invited to visit the Hodeida port,” Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people. Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israel should expect more strikes in the future “as we approach the first anniversary of the Oct. 7 operation, including responding to its aggression on the city of Hodeidah,” Sarea said.
The deputy head of the Houthi’s media office, Nasruddin Amer, said in a post on X on Sunday that the missile had reached Israel after “20 missiles failed to intercept” it, describing it as the “beginning”.
The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.
“No injuries were reported,” the military said.
PARIS (Reuters) – Eight people have died trying to cross the Channel from France to England, French authorities said on Sunday, confirming earlier media reports.
This latest incident follows the deaths of 12 people earlier this month when their boat capsized in the Channel on its way to Britain and highlights the pressure on the British and French governments to find ways to tackle the boat crossings.
Jacques Billant, the Prefect of the Pas-de-Calais region, said that rescue crews were alerted that a boat with 59 people onboard was in difficulty in waters off the coast of Ambleteuse in the Pas-de-Calais area.
“A new drama took place around one in the morning and we deplore the death of eight people,” he told a news conference, adding that the other 51 onboard were now in the care of rescue and medical crews.
The dead were men from Eritrea, Sudan, Syria, Egypt, Iran and Afghanistan, he added.
The Channel is one of the world’s busiest shipping lanes and currents are strong, which makes crossing on small boats dangerous.
The latest incident brings to 46 the number of people who have died trying to cross the Channel from France since the start of the year, Billant said.
On September 14 alone there were eight attempts to cross the Channel from France and some 200 migrants were rescued, he said.
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