The sluggish U.S. recovery has put a crimp in the American trucking industry. But Cummins, which designs, manufactures and distributes diesel and natural gas engines, managed to grow by tapping emerging markets like China, India and Brazil.
And thanks to that wise move, shares of the engine maker's stock have more than doubled in 2010 and quarterly profit and revenue have also grown at a healthy clip. At the start of the year, Cummins posted its most profitable fourth quarter in its history, and more recently, the company booked a third-quarter profit that nearly tripled from a year earlier to $283 million.
"Our strength in large international markets provided significant benefits to the company and we continue to see productivity improvements in our manufacturing operations," said CEO Tim Solso in October. Cummins' sales of truck and bus engines spiked 46% during the third quarter, while international sales of industrial engines skyrocketed 96%, led by construction engine demand in emerging markets.
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