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EX-99 - CUMMINS INCesexhibit99.htm

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549


FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES EXCHANGE ACT OF 1934


Date of Report: 
May 1, 2012

 

  CUMMINS INC.
(Exact name of registrant as specified in its charter)

Indiana
(State or other Jurisdiction of
Incorporation)

1-4949
(Commission File Number)

35-0257090
(I.R.S. Employer Identification
 No.)


500 Jackson Street
P. O. Box 3005

Columbus, IN  47202-3005
(Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code:  (812) 377-5000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[ ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

  

 


Item 2.02. Results of Operations and Financial Condition.

 

On May 1, 2012, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or, “us”) issued the attached press release reporting its financial results for the first quarter of 2012.  A copy of Cummins' press release is attached hereto as Exhibit 99 and hereby incorporated by reference.
 

Item 9.01. Financial Statements and Exhibits.

 

 

(d)

The following exhibit is furnished pursuant to Item 2.02 herewith:
 

99-Press Release dated May 1, 2012


SIGNATURE
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 1, 2012

 

 

 

CUMMINS INC.

 

 /s/ Marsha L. Hunt
______________________________

Marsha L. Hunt
Vice President - Corporate Controller
(Principal Accounting Officer)

 

 

 

 

 

 

 

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

April 1,

 

December 31,

 

March 27,

In millions, except per share amounts

 

2012

 

2011

 

2011

NET SALES

 

$

 4,472

 

$

 4,921

 

$

 3,860

 

Cost of sales

 

 

 3,274

 

 

 3,680

 

 

 2,903

GROSS MARGIN

 

 

 1,198

 

 

 1,241

 

 

 957

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES AND INCOME

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 475

 

 

 496

 

 

 389

 

Research, development and engineering expenses

 

 

 181

 

 

 179

 

 

 129

 

Equity, royalty and interest income from investees  (Note 1)

 

 

 104

 

 

 101

 

 

 96

 

Gain on sale of business

 

 

 - 

 

 

 53

 

 

 - 

 

Other operating income (expense), net

 

 

 2

 

 

 25

 

 

 (6)

OPERATING INCOME

 

 

 648

 

 

 745

 

 

 529

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 8

 

 

 9

 

 

 6

 

Interest expense

 

 

 8

 

 

 10

 

 

 10

 

Other income (expense), net

 

 

 2

 

 

 14

 

 

 (3)

INCOME BEFORE INCOME TAXES

 

 

 650

 

 

 758

 

 

 522

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense  (Note 2)

 

 

 175

 

 

 186

 

 

 157

CONSOLIDATED NET INCOME

 

 

 475

 

 

 572

 

 

 365

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interests

 

 

 20

 

 

 24

 

 

 22

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

 455

 

$

 548

 

$

 343

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE

 

 

 

 

 

 

 

 

 

 

TO CUMMINS INC.

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 2.39

 

$

 2.87

 

$

 1.75

 

Diluted

 

$

 2.38

 

$

 2.86

 

$

 1.75

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 190.4

 

 

 190.9

 

 

 195.5

 

Diluted

 

 

 190.8

 

 

 191.5

 

 

 196.1

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

 0.40

 

$

 0.40

 

$

 0.2625

 

(a)    Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).

 


 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

 

 

 

 

 

 

 

 

 

 In millions, except par value

April 1, 2012

 

December 31, 2011

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

$

 1,317

 

$

 1,484

 

Marketable securities

 

 252

 

 

 277

 

 

Total cash, cash equivalents and marketable securities

 

 1,569

 

 

 1,761

 

Accounts and notes receivable, net

 

 2,684

 

 

 2,526

 

Inventories

 

 2,382

 

 

 2,141

 

Prepaid expenses and other current assets

 

 682

 

 

 663

 

 

 

Total current assets

 

 7,317

 

 

 7,091

Long-term assets

 

 

 

 

 

 

Property, plant and equipment

 

 5,416

 

 

 5,245

 

 

Accumulated depreciation

 

 (3,025)

 

 

 (2,957)

 

 

Property, plant and equipment, net

 

 2,391

 

 

 2,288

 

Investments and advances related to equity method investees

 

 903

 

 

 838

 

Goodwill

 

 342

 

 

 339

 

Other intangible assets, net

 

 250

 

 

 227

 

Other assets

 

 916

 

 

 885

 

 

 

 

Total assets

$

 12,119

 

$

 11,668

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Loans payable

$

 33

 

$

 28

 

Accounts payable (principally trade)

 

 1,731

 

 

 1,546

 

Current portion of accrued product warranty

 

 418

 

 

 422

 

Accrued compensation, benefits and retirement costs

 

 289

 

 

 511

 

Deferred revenue

 

 211

 

 

 208

 

Taxes payable (including taxes on income)

 

 297

 

 

 282

 

Other accrued expenses

 

 651

 

 

 660

 

 

 

Total current liabilities

 

 3,630

 

 

 3,657

Long-term liabilities

 

 

 

 

 

 

Long-term debt

 

 650

 

 

 658

 

Pensions

 

 157

 

 

 205

 

Postretirement benefits other than pensions

 

 428

 

 

 432

 

Other liabilities and deferred revenue

 

 896

 

 

 885

 

 

 

 

Total liabilities

 

 5,761

 

 

 5,837

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

 

 

Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.2 shares issued

 

 2,017

 

 

 2,001

 

Retained earnings

 

 6,416

 

 

 6,038

 

Treasury stock, at cost, 30.2 and 30.2 shares

 

 (1,590)

 

 

 (1,587)

 

Common stock held by employee benefits trust, at cost, 1.7 and 1.8 shares

 

 (20)

 

 

 (22)

 

Accumulated other comprehensive loss

 

 

 

 

 

 

 

Defined benefit postretirement plans

 

 (713)

 

 

 (724)

 

 

Other

 

 (100)

 

 

 (214)

 

 

Total accumulated other comprehensive loss

 

 (813)

 

 

 (938)

 

 

 

Total Cummins Inc. shareholders’ equity

 

 6,010

 

 

 5,492

 

Noncontrolling interests

 

 348

 

 

 339

 

 

 

 

Total equity

 

 6,358

 

 

 5,831

 

 

 

 

 

Total liabilities and equity

$

 12,119

 

$

 11,668

 

(a)    Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).

 


 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

 

 

 

 

 

 

 

 

 

Three months ended

In millions

April 1, 2012

 

March 27, 2011

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Consolidated net income

$

 475

 

$

 365

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities

 

 

 

 

 

 

 

Depreciation and amortization

 

 85

 

 

 79

 

 

Deferred income taxes

 

 (27)

 

 

 21

 

 

Equity in income of investees, net of dividends

 

 (59)

 

 

 (62)

 

 

Pension contributions in excess of expense

 

 (27)

 

 

 (24)

 

 

Other post-retirement benefits payments in excess of expense

 

 (4)

 

 

 (5)

 

 

Stock-based compensation expense

 

 7

 

 

 5

 

 

Excess tax benefits on stock-based awards

 

 (11)

 

 

 (2)

 

 

Translation and hedging activities

 

 10

 

 

 4

 

Changes in current assets and liabilities, net of acquisitions

 

 

 

 

 

 

 

Accounts and notes receivable

 

 (135)

 

 

 (306)

 

 

Inventories

 

 (209)

 

 

 (210)

 

 

Other current assets

 

 (28)

 

 

 (2)

 

 

Accounts payable

 

 148

 

 

 251

 

 

Accrued expenses

 

 (196)

 

 

 (28)

 

Changes in other liabilities and deferred revenue

 

 29

 

 

 24

 

Other, net

 

 (37)

 

 

 (22)

Net cash provided by operating activities

 

 21

 

 

 88

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

Capital expenditures

 

 (126)

 

 

 (91)

 

Investments in internal use software

 

 (16)

 

 

 (10)

 

Investments in and advances to equity investees

 

 (5)

 

 

 (21)

 

Acquisition of businesses, net of cash acquired

 

 (5)

 

 

 - 

 

Investments in marketable securities—acquisitions

 

 (146)

 

 

 (101)

 

Investments in marketable securities—liquidations

 

 184

 

 

 134

 

Cash flows from derivatives not designated as hedges

 

 11

 

 

 4

 

Other, net

 

 1

 

 

 7

Net cash used in investing activities

 

 (102)

 

 

 (78)

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

Proceeds from borrowings

 

 12

 

 

 38

 

Payments on borrowings and capital lease obligations

 

 (38)

 

 

 (45)

 

Net borrowings (payments) under short-term credit agreements

 

 - 

 

 

 1

 

Distributions to noncontrolling interests

 

 (22)

 

 

 (21)

 

Dividend payments on common stock

 

 (77)

 

 

 (51)

 

Repurchases of common stock

 

 (8)

 

 

 (190)

 

Excess tax benefits on stock-based awards

 

 11

 

 

 2

 

Other, net

 

 9

 

 

 4

Net cash used in financing activities

 

 (113)

 

 

 (262)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 27

 

 

 8

Net increase (decrease) in cash and cash equivalents

 

 (167)

 

 

 (244)

Cash and cash equivalents at beginning of year

 

 1,484

 

 

 1,023

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

 1,317

 

$

 779

 

(a)    Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).

 


 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

In millions

Engine

 

Components

 

Power Generation

 

Distribution

 

Non-segment Items(1)

Total

 

Three months ended April 1, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

External sales

 

$

 2,412

 

$

 774

 

$

 516

 

$

 770

 

$

 - 

 

$

 4,472

 

Intersegment sales

 

 447

 

 325

 

 264

 

 5

 

 (1,041)

 

 

 - 

 

 

Total sales

 

 

 2,859

 

 

 1,099

 

 

 780

 

 

 775

 

 

 (1,041)

 

 

 4,472

 

Depreciation and amortization(2)

 

 

 47

 

 

 19

 

 

 11

 

 

 7

 

 

 - 

 

 

 84

 

Research, development and engineering expenses

 

 

 111

 

 

 51

 

 

 18

 

 

 1

 

 

 - 

 

 

 181

 

Equity, royalty and interest income from investees

 

 

 38

 

 

 8

 

 

 10

 

 

 48

 

 

 - 

 

 

 104

 

Interest income

 

 

 4

 

 

 1

 

 

 2

 

 

 1

 

 

 - 

 

 

 8

 

Segment EBIT

 

 

 381

 

 

 143

 

 

 76

 

 

 94

 

 

 (36)

 

 

 658

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

Three months ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

External sales

 

$

 2,628

 

$

 781

 

$

 682

 

$

 830

 

$

 - 

 

$

 4,921

 

Intersegment sales

 

 433

 

 

 311

 

 

 238

 

 

 4

 

 

 (986)

 

 

 - 

 

 

Total sales

 

 

 3,061

 

 

 1,092

 

 

 920

 

 

 834

 

 

 (986)

 

 

 4,921

 

Depreciation and amortization(2)

 

 

 46

 

 

 18

 

 

 10

 

 

 8

 

 

 - 

 

 

 82

 

Research, development and engineering expenses

 

 

 112

 

 

 49

 

 

 17

 

 

 1

 

 

 - 

 

 

 179

 

Equity, royalty and interest income from investees

 

 

 40

 

 

 7

 

 

 10

 

 

 44

 

 

 - 

 

 

 101

 

Interest income

 

 

 4

 

 

 2

 

 

 2

 

 

 1

 

 

 - 

 

 

 9

 

Segment EBIT

 

 

 368

 

 

 132

 

 

 87

 

 

 87

 

 

 94

 

 

 768

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

Three months ended March 27, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

External sales

 

$

 2,006

 

$

 660

 

$

 557

 

$

 637

 

$

 - 

 

$

 3,860

 

Intersegment sales

 

 385

 

 264

 

 238

 

 5

 

 (892)

 

 

 - 

 

 

Total sales

 

 

 2,391

 

 

 924

 

 

 795

 

 

 642

 

 

 (892)

 

 

 3,860

 

Depreciation and amortization(2)

 

 

 45

 

 

 18

 

 

 10

 

 

 6

 

 

 - 

 

 

 79

 

Research, development and engineering expenses

 

 

 80

 

 

 37

 

 

 11

 

 

 1

 

 

 - 

 

 

 129

 

Equity, royalty and interest income from investees

 

 

 42

 

 

 8

 

 

 8

 

 

 38

 

 

 - 

 

 

 96

 

Interest income

 

 

 3

 

 

 1

 

 

 1

 

 

 1

 

 

 - 

 

 

 6

 

Segment EBIT

 

 

 290

 

 

 105

 

 

 89

 

 

 89

 

 

 (41)

 

 

 532

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 (1)

Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses.  There were no significant unallocated corporate expenses for the three month periods ended April 1, 2012 and March 27, 2011.  For the three months ended December 31, 2011, unallocated corporate expenses include a $53 million gain ($33 million after-tax) recorded for the sale of certain assets and liabilities of our light-duty filtration business from our Components segment and a $38 million gain ($24 million after-tax) related to flood damage recoveries from the insurance settlement regarding a June 2008 flood in Southern Indiana.

 (2)

Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as “Interest expense.”

 

 

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:

 

 

 

 

Three months ended

 

 

 

 

April 1,

 

December 31,

 

March 27,

 

In millions

 

2012

 

2011

 

2011

 

Segment EBIT

 

$

 658

 

$

 768

 

$

 532

 

Less

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 8

 

 

 10

 

 

 10

 

Income before income taxes

 

$

 650

 

$

 758

 

$

 522

 


 

CUMMINS INC. AND SUBSIDIARIES

SELECTED FOOTNOTE DATA

(Unaudited)

 

NOTE 1.  EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

 

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the interim reporting periods was as follows:

 

 

 

 

Three months ended

 

 

 

 

April 1,

 

December 31,

 

March 27,

 

In millions

 

2012

 

2011

 

2011

 

Distribution Entities

 

 

 

 

 

 

 

 

 

 

North American distributors

 

$

 40

 

$

 34

 

$

 30

 

Komatsu Cummins Chile, Ltda.

 

 

 5

 

 

 6

 

 

 4

 

All other distributors

 

 

 1

 

 

 1

 

 

 1

 

Manufacturing Entities

 

 

 

 

 

 

 

 

 

 

Chongqing Cummins Engine Company, Ltd.

 

 

 18

 

 

 17

 

 

 12

 

Dongfeng Cummins Engine Company, Ltd.

 

 

 16

 

 

 16

 

 

 23

 

Cummins Westport, Inc.

 

 

 5

 

 

 6

 

 

 1

 

Tata Cummins, Ltd.

 

 

 4

 

 

 5

 

 

 4

 

Shanghai Fleetguard Filter Co., Ltd.

 

 

 3

 

 

 3

 

 

 4

 

Valvoline Cummins, Ltd.

 

 

 2

 

 

 1

 

 

 2

 

Komatsu manufacturing alliances

 

 

 (1)

 

 

 2

 

 

 2

 

Beijing Foton Cummins Engine Co., Ltd.

 

 

 (2)

 

 

 (2)

 

 

 (2)

 

All other manufacturers

 

 

 1

 

 

 2

 

 

 6

 

 

Cummins share of net income

 

 

 92

 

 

 91

 

 

 87

 

Royalty and interest income

 

 

 12

 

 

 10

 

 

 9

 

 

Equity, royalty and interest income from investees

 

$

 104

 

$

 101

 

$

 96

 

 

NOTE 2.  INCOME TAXES

 

Our effective tax rate for the year is expected to approximate 27 percent, absent any discrete period activity.  Our tax rate is generally less than the 35 percent U.S. statutory income tax rate primarily due to lower tax rates on foreign income.  The tax rate for the three month period ended April 1, 2012, was 27 percent.

 

Our effective tax rate for the three months ended March 27, 2011, was 30 percent.  The decrease in the 2012 effective tax rate compared to 2011 is due primarily to our assertion that income earned after 2011 by our China operations is permanently reinvested, as well as certain tax planning strategies implemented in our U.K. subsidiaries.


 

CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

 

Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding special items

 

We believe this is a useful measure of our operating performance for the period presented as it illustrates our operating performance without regard to special items including the gains related to the sale of certain assets and liabilities and flood insurance recovery.  This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America and may not be consistent with measures used by other companies.  It should be considered supplemental data.  The following table reconciles net income attributable to Cummins Inc. to net income attributable to Cummins Inc. excluding special items for the quarters ended April 1, 2012, December 31, 2011 and March 27, 2011.

 

 

 

 

  

 

Three months ended

 

 

 

  

 

April 1, 2012

 

December 31, 2011

 

March 27, 2011

In millions

 

Net Income

 

Diluted EPS

 

Net Income

 

Diluted EPS

 

Net Income

 

Diluted EPS

Net income attributable to Cummins Inc.

 

$

 455

 

$

 2.38

 

$

 548

 

$

 2.86

 

$

 343

 

$

 1.75

Subtract

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of business  (1)

 

 

 - 

 

 

 - 

 

 

 33

 

 

 0.17

 

 

 - 

 

 

 - 

 

Flood insurance recovery (1)

 

 

 - 

 

 

 - 

 

 

 24

 

 

 0.13

 

 

 - 

 

 

 - 

Net income attributable to Cummins Inc. excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

special items

 

$

 455

 

$

 2.38

 

$

 491

 

$

 2.56

 

$

 343

 

$

 1.75

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (1)

The gains have been excluded from operating results as they were not considered in our evaluation of performance for the quarter ended December 31, 2011.


 

CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

 

Earnings before interest expense, taxes and noncontrolling interests

 

We define EBIT as earnings or loss before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries (EBIT).  We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs.  Below is a reconciliation of EBIT, a non-GAAP financial measure, to “Net income attributable to Cummins Inc.,” for each of the applicable periods:

 

 

 

 

 

Three months ended

 

 

 

 

 

April 1,

 

December 31,

 

March 27,

 

In millions

2012

 

2011

 

2011

 

Earnings before interest expense, income taxes and

 

 

 

 

 

 

 

 

 

 

special items

$

 658

 

$

 677

 

$

 532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest expense, income taxes and

 

 

 

 

 

 

 

 

 

 

special items as a percentage of net sales

 

14.7%

 

 

13.8%

 

 

13.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add

 

 

 

 

 

 

 

 

 

 

Gain on sale of business

 

 - 

 

 

 53

 

 

 - 

 

 

Flood insurance recovery

 

 - 

 

 

 38

 

 

 - 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest expense and income taxes

$

 658

 

$

 768

 

$

 532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT as a percentage of net sales

 

14.7%

 

 

15.6%

 

 

13.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 8

 

 

 10

 

 

 10

 

 

Income tax expense

 

 175

 

 

 186

 

 

 157

 

 

 

Consolidated net income

 

 475

 

 

 572

 

 

 365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 20

 

 

 24

 

 

 22

 

 

 

 

Net income attributable to Cummins Inc.

$

 455

 

$

 548

 

$

 343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Cummins Inc. as a

 

 

 

 

 

 

 

 

 

 

percentage of net sales

 

10.2%

 

 

11.1%

 

 

8.9%

 


 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

Engine segment net sales by market

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

 892

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 892

Medium-duty truck and bus

 

 

 526

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 526

Light-duty automotive and RV

 

 

 286

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 286

Industrial

 

 

 861

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 861

Stationary power

 

 

 294

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 294

 

Total sales

 

$

 2,859

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 2,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

 485

 

$

 693

 

$

 748

 

$

 865

 

$

 2,791

Medium-duty truck and bus

 

 

 474

 

 

 608

 

 

 640

 

 

 598

 

 

 2,320

Light-duty automotive and RV

 

 

 296

 

 

 310

 

 

 271

 

 

 299

 

 

 1,176

Industrial

 

 

 855

 

 

 988

 

 

 977

 

 

 1,030

 

 

 3,850

Stationary power

 

 

 281

 

 

 301

 

 

 319

 

 

 269

 

 

 1,170

 

Total sales

 

$

 2,391

 

$

 2,900

 

$

 2,955

 

$

 3,061

 

$

 11,307

 

Unit shipments by engine classification (including unit shipments to Power Generation)

 

2012

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Midrange

 

 109,000

 

 - 

 

 - 

 

 - 

 

 109,000

Heavy-duty

 

 36,000

 

 - 

 

 - 

 

 - 

 

 36,000

High-horsepower

 

 5,500

 

 - 

 

 - 

 

 - 

 

 5,500

 

Total units

 

 150,500

 

 - 

 

 - 

 

 - 

 

 150,500

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Midrange

 

 109,400

 

 131,300

 

 130,600

 

 138,100

 

 509,400

Heavy-duty

 

 20,000

 

 29,900

 

 31,100

 

 35,300

 

 116,300

High-horsepower

 

 4,900

 

 5,700

 

 5,600

 

 5,400

 

 21,600

 

Total units

 

 134,300

 

 166,900

 

 167,300

 

 178,800

 

 647,300


 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

Component segment sales by business

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Emission solutions

 

$

 404

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 404

Turbo technologies

 

 

 298

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 298

Filtration

 

 

 270

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 270

Fuel systems

 

 

 127

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 127

 

Total sales

 

$

 1,099

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 1,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Emission solutions

 

$

 273

 

$

 311

 

$

 306

 

$

 372

 

$

 1,262

Turbo technologies

 

 

 297

 

 

 314

 

 

 298

 

 

 314

 

 

 1,223

Filtration

 

 

 255

 

 

 287

 

 

 288

 

 

 283

 

 

 1,113

Fuel systems

 

 

 99

 

 

 120

 

 

 123

 

 

 123

 

 

 465

 

Total sales

 

$

 924

 

$

 1,032

 

$

 1,015

 

$

 1,092

 

$

 4,063

 

In the first quarter of 2012, our Power Generation segment reorganized its reporting structure to include the following businesses:  power products, power systems, generator technologies and power solutions.  Sales for our Power Generation segment by business (including 2011 and 2010 reorganized balances) were as follows:

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power products

 

$

 375

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 375

Power systems

 

 

 188

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 188

Generator technologies

 

 

 141

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 141

Power solutions

 

 

 76

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 76

 

Total sales

 

$

 780

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power products

 

$

 377

 

$

 415

 

$

 433

 

$

 411

 

$

 1,636

Power systems

 

 

 189

 

 

 210

 

 

 188

 

 

 228

 

 

 815

Generator technologies

 

 

 154

 

 

 189

 

 

 166

 

 

 164

 

 

 673

Power solutions

 

 

 75

 

 

 95

 

 

 87

 

 

 117

 

 

 374

 

Total sales

 

$

 795

 

$

 909

 

$

 874

 

$

 920

 

$

 3,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

Power products

 

$

 1,465

 

 

 

 

 

 

 

 

 

 

 

 

Power systems

 

 

 616

 

 

 

 

 

 

 

 

 

 

 

 

Generator technologies

 

 

 550

 

 

 

 

 

 

 

 

 

 

 

 

Power solutions

 

 

 288

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

 2,919

 

 

 

 

 

 

 

 

 

 

 

 


 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

Distribution segment sales by product

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts and filtration

 

$

 288

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 288

Power generation

 

 

 186

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 186

Engines

 

 

 166

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 166

Service

 

 

 135

 

 

 - 

 

 

 - 

 

 

 - 

 

 

 135

 

Total sales

 

$

 775

 

$

 - 

 

$

 - 

 

$

 - 

 

$

 775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts and filtration

 

$

 235

 

$

 271

 

$

 283

 

$

 296

 

$

 1,085

Power generation

 

 

 145

 

 

 195

 

 

 191

 

 

 191

 

 

 722

Engines

 

 

 140

 

 

 186

 

 

 171

 

 

 206

 

 

 703

Service

 

 

 122

 

 

 133

 

 

 138

 

 

 141

 

 

 534

 

Total sales

 

$

 642

 

$

 785

 

$

 783

 

$

 834

 

$

 3,044