Cummins Names Freeland as Operating Chief
By Tess Stynes
Cummins Inc. ( CMI ) appointed the president of its engines business, Rich Freeland, as its chief operating officer, and the company also unveiled a 25% dividend increase and the buyback of as much as an additional $1 billion of its stock.
In his new role, Mr. Freeland will focus on the heavy-duty engine and power equipment maker's daily operations and report to Tom Linebarger, who will remain chairman and chief executive.
A representative from Cummins wasn't immediately available to comment on whether the appointment is part of a succession planning process.
"As someone who has been with Cummins since 1979, and has successfully led three of our four business units over the years, Rich knows what it takes to be dependable every time for our customers across the globe," Mr. Linebarger said in a statement.
Mr. Freeland has been president of Cummins engine business, its largest business unit, since 2010. During his tenure in that post, revenue grew to more than $10 billion last year, from $6.4 billion in 2010, according to the company.
Mr. Freeland will be succeeded by Dave Crompton, a longtime company veteran who most recently led the heavy duty midrange and light duty segment of the engine business.
Cummins's board raised the quarterly dividend to 78 cents a share, up 15.5 cents a share.
The latest stock buyback authorization takes effect when a previous $1 billion share repurchase program is completed.
Write to Tess Stynes at email@example.com
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