Cummins Inc. (CMI): Can The Company Still Grow in a Sluggish Economy?

But the big push for Cummins has been in natural-gas powered engines, where it has historically worked with Westport Innovations Inc. (USA) (NASDAQ:WPRT) and has also gone out on its own. That’s been a huge growth area, as the Cummins Westport Innovations Inc. (USA) (NASDAQ:WPRT) joint venture got a huge order in February for 900 nat-gas-fueled busses for the mass-transit entities serving Los Angeles and San Diego. Despite modest rises in natural gas prices, they still remain well below equivalent oil prices, and demand for nat-gas alternatives hasn’t slackened.

In Cummins Inc. (NYSE:CMI)’ quarterly report, watch for the company to discuss how recent moves from corporate customers are pushing it to expand more quickly. As Wal-Mart Stores, Inc. (NYSE:WMT) and other users seek to increase their use of nat-gas-powered trucks, Cummins Westport Innovations Inc. (USA) (NASDAQ:WPRT) has a huge potential for further growth even if a cyclical downturn affects more traditional heavy-machinery and component makers.

The article Can Cummins Still Grow in a Sluggish Economy? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of Cummins and Westport Innovations.

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