Cummins Inc. Announces Workforce Reduction

6 November 2000

Cummins Inc. Announces Workforce Reduction

    COLUMBUS, Ind--Nov. 6, 2000--Cummins Inc. today announced that it will reduce its salaried workforce by approximately 350 employees over the next four weeks.
    The reductions, targeted in Cummins' engine business, are part of continued actions by the company to further reduce costs to address the drop in demand in engines for the North American heavy-duty truck market.
    "As we indicated in our third-quarter earnings announcement, we are taking action to reduce fixed costs in our engine business, which has been severely impacted by the decline in the North American heavy-duty truck market," said Tim Solso, Chairman and Chief Executive Officer of Cummins. "Last week, we took steps to further reduce our hourly workforce in Southern Indiana by 150 employees. Including today's announcement, since the beginning of this year, we have reduced our workforce in the engine business by the equivalent of nearly 900 employees."
    "We are continuing to look at every option we have to restructure our heavy truck engine business," continued Solso. "In the short term, this includes the employee reductions we have announced today, delaying or canceling projects, and focusing on other cost reduction activities across all of our business units. Longer term, it means fundamentally rethinking how we participate in the heavy truck engine market. We are focused on what will create the most value for our shareholders over time."
    Cummins said that the costs of the workforce reductions, as well as other restructuring activities yet to be announced, will be included in a charge in the fourth quarter.
    Cummins, headquartered in Columbus, Ind., is the world's largest producer of diesel engines above 200 horsepower. The company provides products and services for customers in markets worldwide for engines, power generation and filtration. Cummins reported record sales of $6.6 billion in 1999. Press releases by fax may be requested by calling (toll free) News on Demand at 888-329-2305. Cummins' home page on the Internet can be found at http://www.cummins.com.
    Certain information included in this press release is forward-looking and involves risks and uncertainties, including general economic and competitive conditions that could significantly affect expected results.