Over the next five years, our consolidated entities will make $2.5 billion in capital expenditures. Together with our partners, we will make another $1 billion in capital expenditures in our joint ventures. Our investments in China and India through 2009, including contributions from our joint venture partners, will total nearly $600 million.

Most of these investments will drive profitable growth in the future as new engine platforms begin production in 2009 and 2010. Investments such as those in highhorsepower engine capacity, fuel systems, turbochargers and aftertreatment will pay more immediate returns.

Along with our willingness to invest capital in our quest for profitable growth, we are continuing to look for new partners in those areas where it makes sense. Our access to these markets is made easier by our joint venture relationships, which allow us to partner with established global companies, such as Dongfeng Automotive Corporation in China, Tata Motors Ltd. in India and Kamaz Inc. in Russia, with limited investment and volume commitment from our partners providing good returns.

Third, Cummins is more diversified and better able to handle the cyclical demand in our markets than at any time in our history. For example, even as some markets have softened, new ones have emerged.

A fourth reason for my optimism is the improvement in our ability to deliver bottomline performance. We have focused on margins and controlling costs, and, as a result, over the past seven years we have grown EBIT at four times the rate of sales.

Finally, our balance sheet is in good shape, with very little debt, positive cash flow and fully-funded qualified pensions. This financial health gives us the flexibility to invest in the people, products, facilities and technologies we need to capture profitable growth opportunities when they arise.