COLUMBUS, Ind. — Cummins recorded new highs in sales and earnings in 2006, the company reported today.

A record fourth quarter capped a successful year for the engine maker, with over $3 billion in sales in Q4 alone. Over the entire year, Cummins reported sales of US$11.36 billion, up 15% from 2005. Earnings Before Interest and Tax (EBIT) was up 30% compared to 2005. Net earnings were also up 30%.

Cummins engine division boasted its best ever quarter for sales during the fourth quarter. This was led by strong gains in the North American heavy- and medium-duty truck markets, the company reported.

“By almost every measure, 2006 was an outstanding year,” said Cummins chairman and CEO, Tim Solso. “We continued to build on the success of the past two years even as we devoted significant time and resources to meeting the 2007 emissions changes in the United States. All of our business segments showed strong sales growth in 2006 and we gained share in key businesses and geographic markets around the world. At the same time, we invested in critical growth opportunities and developed cost-control strategies that will help us weather the temporary slowdown in the North American heavy-duty truck engine market in 2007 as a result of the U.S. emissions changes.”

Heading into 2007, Cummins officials predicted strength in medium-duty and high horsepower engines as well as power generation and distribution will help offset the downturn in North American heavy-duty engine sales. The company will also pursue opportunities through the sale of exhaust aftertreatment and filtration products.

“I am extremely excited about our prospects for 2007 and beyond,” Solso said. “The Company is well-positioned to face the challenges of the changing emissions regulations in the near-term, and we’re also working hard to identify and invest in the next generation of profitable growth opportunities.”