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Cummins Announces Strong First Quarter Results; Raises Full Year Profit Outlook


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Cummins Announces Strong First Quarter Results; Raises Full Year Profit Outlook
  • First quarter revenues of $6.0 billion; GAAP1 Net Income of $663 million
  • EBITDA in the first quarter was 17.2 percent of sales; Diluted EPS of $4.20
  • The company is maintaining its full year 2019 revenue guidance of flat to up 4 percent
  • EBITDA now expected to be in the range of 16.25 to 16.75 percent; up from 15.75 to 16.25 percent

COLUMBUS, Ind.--(BUSINESS WIRE)--Apr. 30, 2019-- Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2019.

First quarter revenues of $6.0 billion increased 8 percent from the same quarter in 2018. Increased truck production in North America and stronger demand in global construction and North American power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent primarily due to a stronger US dollar.

First quarter sales in North America improved by 13 percent while international revenues increased by 1 percent.

“The company shipped a record number of truck engines in North America during the first quarter,” said Chairman and CEO Tom Linebarger. “Our market-leading position in this region reflects our close partnerships with our customers who rely on us to provide a broad range of power solutions for their needs.”

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were a record $1.0 billion, or 17.2 percent of sales, compared to $700 million or 12.6 percent of sales a year ago. First quarter results include a non-segment and non-taxable gain of $37 million ($0.23 per diluted share) related to the mark to market impact on assets related to our non-qualified benefit plans.

Net income attributable to Cummins in the first quarter was $663 million ($4.20 per diluted share), compared to net income of $325 million ($1.96 per diluted share), or $403 million ($2.43 per diluted share) excluding the impact of tax legislation in the first quarter of 2018.

“We achieved record EBITDA in the first quarter while also celebrating our 100th anniversary,” Linebarger said. “We are on track to deliver record results for the year and return significant capital to investors, and will continue to invest across our broad portfolio to power a strong future for our stakeholders.”

2019 Outlook:

Based on the current forecast, Cummins is maintaining its 2019 revenue guidance of flat to up 4 percent driven primarily by increased demand in North America on-highway markets. EBITDA is expected to be in the range of 16.25% to 16.75% of sales, an increase from the prior range of 15.75% to 16.25% of sales, primarily due to lower projected material costs. The Company expects to return 75 percent of Operating Cash Flow to shareholders in 2019 in the form of dividends and share repurchases.

Our outlook does not include any potential impact of the company’s recently announced review of its emission certification process and compliance with emissions standards.

First Quarter 2019 Highlights:

  • Cummins was named to Ethisphere’s list of the World’s Most Ethical Companies for a 12th consecutive year.
  • Barron’s magazine announced that Cummins made its 100 Most Sustainable Companies list, moving from No. 60 in its inaugural ranking in 2018 to No. 14 in its 2019 list.
  • The Human Rights Campaign (HRC) announced that Cummins received a perfect score for a 14th consecutive year in its Corporate Equality Index.
  • Amtrak announced that it will be purchasing 75 Charger locomotives for delivery starting in 2021 which will use Cummins’ QSK95 Tier 4 engine systems to help deliver clean, efficient power for passenger trains.

1 Generally Accepted Accounting Principles

First quarter 2019 detail (all comparisons to same period in 2018)

Engine Segment

  • Sales - $2.7 billion, up 8 percent
  • Segment EBITDA - $438 million, or 16.5 percent of sales, compared to $286 million or 11.7 percent of sales
  • On-highway revenues increased 9 percent and off-highway revenues increased 6 percent primarily due to increased demand in North America truck and global construction markets

Distribution Segment

  • Sales - $2.0 billion, up 8 percent
  • Segment EBITDA - $171 million, or 8.5 percent of sales, compared to $123 million or 6.6 percent of sales
  • Revenues in North America increased by 10 percent and international sales grew by 4 percent
  • Strong demand across all product lines in North America, especially data centers, was partially offset by the unfavorable impact from a stronger US dollar, which impacted sales by 2 percent

Components Segment

  • Sales - $1.9 billion, up 6 percent
  • Segment EBITDA - $325 million, or 17.5 percent of sales, compared to $227 million or 12.9 percent of sales
  • Revenues in North America increased by 17 percent due to higher heavy and medium-duty truck production while international sales declined by 8 percent

Power Systems Segment

  • Sales - $1.1 billion, flat versus prior year
  • Segment EBITDA - $138 million, or 12.8 percent of sales, compared to $142 million, or 13.2 percent of sales
  • Industrial revenues increased 1 percent while Power generation revenues decreased 1 percent

Electrified Power Segment

  • Sales - $3 million
  • Segment EBITDA loss - $29 million

About Cummins

Cummins Inc., a global technology leader, is a corporation of complementary business segments designing, manufacturing, distributing and servicing a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including transmissions, battery systems, fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 62,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations, and over 7,600 dealer locations. In 2018, the company earned about $2.1 billion on sales of $23.8 billion. See how Cummins is powering a world that’s Always On by accessing news releases and more information at https://www.cummins.com/always-on. Follow Cummins on Twitter at www.twitter.com/cummins and on YouTube at www.youtube.com/cumminsinc.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA percentage for the full year of 2019. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: the adoption and implementation of global emission standards; the price and availability of energy; the pace of infrastructure development; increasing global competition among our customers; general economic, business and financing conditions; governmental action; changes in our customers’ business strategies; competitor pricing activity; expense volatility; labor relations; and (i) any adverse results of our internal review into our emissions certification process and compliance with emissions standards; (ii) a sustained slowdown or significant downturn in our markets; (iii) our truck manufacturing and OEM customers discontinuing outsourcing their engine needs; (iv) the development of new technologies; (v) the discovery of any significant additional problems with our engine platforms or aftertreatment systems in North America; (vi) performance or safety-related recalls; (vii) policy changes impacting international trade; (viii) the United Kingdom’s decision to end its membership in the European Union; (xi) lower than anticipated market acceptance of our new or existing products or services; (x) a slowdown in infrastructure development and/or depressed commodity prices; (xi) vulnerability to supply chain shortages from single-sourced suppliers; (xii) potential security breaches or other disruptions to our information technology systems and data security; (xiii) financial distress or a change-in-control of one of our large truck OEM customers; (xiv) our reliance on significant earnings from investees that we do not directly control; (xv) our pursuit of strategic acquisitions and divestitures; and (xvi) other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2018 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release, and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

We believe net income and diluted earnings per share attributable to Cummins Inc. excluding Tax Legislation is a useful measure of our operating performance without regard to Tax Legislation. These measures are not in accordance with, or an alternative for GAAP and may not be consistent with measures used by other companies.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EST. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

       
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)
 
Three months ended
March 31,   April 1,
In millions, except per share amounts 2019 2018
NET SALES $ 6,004 $ 5,570
Cost of sales 4,472 4,370
GROSS MARGIN 1,532 1,200
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 593 577
Research, development and engineering expenses 237 210
Equity, royalty and interest income from investees 92 115
Other operating income (expense), net 5 2
OPERATING INCOME 799 530
Interest income 12 7
Interest expense 32 24
Other income, net 66 10
INCOME BEFORE INCOME TAXES 845 523
Income tax expense 176 198
CONSOLIDATED NET INCOME 669 325
Less: Net income attributable to noncontrolling interests 6
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 663 $ 325
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 4.22 $ 1.97
Diluted $ 4.20 $ 1.96
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 157.2 164.9
Diluted 157.7 165.7
               
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
 
         
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
 
March 31, December 31,
In millions, except par value 2019 2018
ASSETS
Current assets
Cash and cash equivalents $ 1,328 $ 1,303
Marketable securities 246   222  
Total cash, cash equivalents and marketable securities 1,574 1,525
Accounts and notes receivable, net 4,025 3,866
Inventories 3,893 3,759
Prepaid expenses and other current assets 599   668  
Total current assets 10,091   9,818  
Long-term assets
Property, plant and equipment, net 4,066 4,096
Investments and advances related to equity method investees 1,303 1,222
Goodwill 1,125 1,126
Other intangible assets, net 895 909
Pension assets 939 929
Other assets 1,427   962  

Total assets

$ 19,846   $ 19,062  
 
LIABILITIES
Current liabilities
Accounts payable (principally trade) $ 3,018 $ 2,822
Loans payable 70 54
Commercial paper 709 780
Accrued compensation, benefits and retirement costs 364 679
Current portion of accrued product warranty 762 654
Current portion of deferred revenue 509 498
Other accrued expenses 958 852
Current maturities of long-term debt 37   45  
Total current liabilities 6,427   6,384  
Long-term liabilities
Long-term debt 1,605 1,597
Pensions and other postretirement benefits 520 532
Accrued product warranty 682 740
Deferred revenue 697 658
Other liabilities 1,188   892  
Total liabilities $ 11,119   $ 10,803  
 
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued $ 2,273 $ 2,271
Retained earnings 13,401 12,917
Treasury stock, at cost, 64.9 and 64.4 shares (6,111 ) (6,028 )
Common stock held by employee benefits trust, at cost, 0.3 and 0.4 shares (4 ) (5 )
Accumulated other comprehensive loss (1,739 ) (1,807 )
Total Cummins Inc. shareholders’ equity 7,820 7,348
Noncontrolling interests 907   911  
Total equity $ 8,727   $ 8,259  
Total liabilities and equity $ 19,846   $ 19,062  
               
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
 
   
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
 
Three months ended
March 31,       April 1,
In millions 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $ 669 $ 325
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities
Depreciation and amortization 157 154
Deferred income taxes 11 (27 )
Equity in income of investees, net of dividends (64 ) (95 )
Pension contributions (in excess of) under expense, net (17 ) 13
Other postretirement benefits payments in excess of expense, net (12 ) (5 )
Stock-based compensation expense 9 9
(Gain) loss on corporate owned life insurance (37 ) 3
Foreign currency remeasurement and transaction exposure 79 38
Changes in current assets and liabilities
Accounts and notes receivable (135 ) (217 )
Inventories (107 ) (259 )
Other current assets 67 56
Accounts payable 166 246
Accrued expenses (293 ) (337 )
Changes in other liabilities 64 27
Other, net (145 ) (48 )
Net cash provided by (used in) operating activities 412   (117 )
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (109 ) (72 )
Investments in internal use software (20 ) (15 )
Investments in and advances to equity investees (10 ) (16 )
Investments in marketable securities—acquisitions (121 ) (67 )
Investments in marketable securities—liquidations 103 82
Cash flows from derivatives not designated as hedges 55 27
Other, net 31   25  
Net cash used in investing activities (71 ) (36 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Net (payments) borrowings of commercial paper (71 ) 295
Payments on borrowings and finance lease obligations (10 ) (16 )
Distributions to noncontrolling interests (13 ) (11 )
Dividend payments on common stock (179 ) (178 )
Repurchases of common stock (100 ) (163 )
Other, net 26   21  
Net cash used in financing activities (347 ) (52 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 31   43  
Net increase (decrease) in cash and cash equivalents 25 (162 )
Cash and cash equivalents at beginning of year 1,303   1,369  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,328   $ 1,207  
               
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
 
               
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
 
Power Electrified Total Intersegment
In millions Engine Distribution Components Systems Power Segments

Eliminations (1)

Total
Three months ended March 31, 2019
External sales $ 1,984 $ 1,993 $ 1,401 $ 623 $ 3 $ 6,004 $ $ 6,004
Intersegment sales 669   8   460   454     1,591   (1,591 )  
Total sales 2,653 2,001 1,861 1,077 3 7,595 (1,591 ) 6,004
Research, development and engineering expenses 78 7 75 56 21 237 237
Equity, royalty and interest income from investees 56 11 10 15 92 92
Interest income 4 4 2 2 12 12
Segment EBITDA 438 171 325 138 (29 ) 1,043 (10 ) 1,033
Depreciation and amortization (2) 50 29 46 29 2 156 156
 
EBITDA as a percentage of total sales 16.5 % 8.5 % 17.5 % 12.8 % NM 13.7 % 17.2 %
 
Three months ended April 1, 2018
External sales $ 1,813 $ 1,847 $ 1,313 $ 595 $ 2 $ 5,570 $ $ 5,570
Intersegment sales 633   6   440   479     1,558   (1,558 )  
Total sales 2,446 1,853 1,753 1,074 2 7,128 (1,558 ) 5,570
Research, development and engineering expenses 79 5 62 57 7 210 210
Equity, royalty and interest income from investees 67 13 16 19 115 115
Interest income 2 2 1 2 7 7
Segment EBITDA 286 123 227 142 (10 ) 768 (68 ) 700
Depreciation and amortization (2) 49 27 46 30 1 153 153
 
EBITDA as a percentage of total sales 11.7 % 6.6 % 12.9 % 13.2 % NM 10.8 % 12.6 %
                                   
"NM" - not meaningful information

(1)

  Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 31, 2019 and April 1, 2018.

(2)

Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and $1 million for the three month periods ended March 31, 2019 and April 1, 2018. A portion of depreciation expense is included in "Research, development and engineering expense."
 
       
CUMMINS INC. AND SUBSIDIARIES
RECONCILIATION OF SEGMENT INFORMATION
(Unaudited)
 

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

 
Three months ended
March 31,     April 1,
In millions 2019 2018
Total EBITDA $ 1,033 $ 700
Less:
Depreciation and amortization 156 153
Interest expense 32 24
Income before income taxes $ 845 $ 523
 
     
CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)
 
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
 

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

 
Three months ended
March 31,       April 1,
In millions 2019 2018
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd. $ 21 $ 21
Dongfeng Cummins Engine Company, Ltd. 14 17
Chongqing Cummins Engine Company, Ltd. 12 17
All other manufacturers 27 36
Distribution entities
Komatsu Cummins Chile, Ltda. 6 7
All other distributors (1 )
Cummins share of net income 79 98
Royalty and interest income 13   17
Equity, royalty and interest income from investees $ 92   $ 115
 

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Reconciliation of Non GAAP measures - Earnings before interest, income taxes, noncontrolling interests, depreciation and amortization (EBITDA)

We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard for financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.

EBITDA is not in accordance with, or an alternative for, accounting principles generally accepted in the United States (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBITDA for each of the applicable periods:

    Three months ended
March 31,       April 1,
In millions 2019 2018
Net income attributable to Cummins Inc. $ 663 $ 325
 
Net income attributable to Cummins Inc. as a percentage of net sales 11.0 % 5.8 %
 
Add:
Net income attributable to noncontrolling interests 6    
Consolidated net income 669   325  
 
Add:
Interest expense 32 24
Income tax expense 176 198
Depreciation and amortization 156   153  
EBITDA $ 1,033   $ 700  
 
EBITDA as a percentage of net sales 17.2 % 12.6 %
 

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

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

We believe these are useful measures of our operating performance for the periods presented as they illustrate our operating performance without regard to other discrete tax adjustments. These measures are not in accordance with, or an alternative for GAAP and may not be consistent with measures used by other companies. This should be considered supplemental data. The following table reconciles net income and diluted EPS attributable to Cummins Inc. to net income and diluted EPS attributable to Cummins Inc. excluding special discrete tax items for the following periods:

  Three months ended
March 31,   April 1,
2019 2018
  Diluted   Diluted
In millions, except per share amounts Net Income EPS Net Income EPS
Net income and diluted EPS attributable to Cummins Inc. $ 663 $ 4.20 $ 325 $ 1.96

Special discrete tax items (1)

    78   0.47
Net income and diluted EPS attributable to Cummins Inc. excluding special discrete tax items $ 663   $ 4.20   $ 403   $ 2.43
                 
(1)   Our effective tax rate for the three months ended April 1, 2018, was 37.9 percent and contained $78 million, or $0.47 per share, of unfavorable discrete tax items, primarily related to a Tax Legislation adjustment of $74 million. This included $39 million associated with changes related to the Tax Legislation measurement period adjustment and $35 million associated with the one-time recognition of deferred tax charges at historical tax rates on intercompany profit in inventory.
 
         
CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)
 
Engine Segment Sales by Market and Unit Shipments by Engine Classification
 

Sales for our Engine segment by market were as follows:

 
2019
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 979 $ $ $ $ 979
Medium-duty truck and bus 721 721
Light-duty automotive 382 382
Off-highway 571         571
Total sales $ 2,653   $   $   $   $ 2,653
 
2018
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 815 $ 920 $ 958 $ 959 $ 3,652
Medium-duty truck and bus 692 777 699 687 2,855
Light-duty automotive 402 444 517 456 1,819
Off-highway 537   555   552   596   2,240
Total sales $ 2,446   $ 2,696   $ 2,726   $ 2,698   $ 10,566
 

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

2019          
Units Q1 Q2 Q3 Q4 YTD
Heavy-duty 33,900 33,900
Medium-duty 79,000 79,000
Light-duty 56,400         56,400
Total units 169,300         169,300
 
2018
Units Q1 Q2 Q3 Q4 YTD
Heavy-duty 26,600 32,000 34,600 35,300 128,500
Medium-duty 74,000 83,500 76,000 77,600 311,100
Light-duty 61,900   68,500   76,800   66,200   273,400
Total units 162,500   184,000   187,400   179,100   713,000
 

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2019          
In millions Q1 Q2 Q3 Q4 YTD
Parts $ 844 $ $ $ $ 844
Power generation 403 403
Engines 391 391
Service 363         363
Total sales $ 2,001   $   $   $   $ 2,001
 
2018
In millions Q1 Q2 Q3 Q4 YTD
Parts $ 808 $ 817 $ 800 $ 809 $ 3,234
Power generation 326 346 359 455 1,486
Engines 367 461 400 406 1,634
Service 352   370   372   380   1,474
Total sales $ 1,853   $ 1,994   $ 1,931   $ 2,050   $ 7,828
 

Component Segment Sales by Product Line

Sales for our Components segment by product line were as follows:

2019          
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 854 $ $ $ $ 854
Turbo technologies 335 335
Filtration 325 325
Electronics and fuel systems 198 198
Automated transmissions 149         149
Total sales $ 1,861   $   $   $   $ 1,861
 
2018
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 775 $ 841 $ 769 $ 792 $ 3,177
Turbo technologies 340 355 317 331 1,343
Filtration 320 324 308 313 1,265
Electronics and fuel systems 201 226 210 201 838
Automated transmissions 117   141   150   135   543
Total sales $ 1,753   $ 1,887   $ 1,754   $ 1,772   $ 7,166
 

Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification

Sales for our Power Systems segment by product line were as follows:

2019          
In millions Q1 Q2 Q3 Q4 YTD
Power generation $ 567 $ $ $ $ 567
Industrial 420 420
Generator technologies 90         90
Total sales $ 1,077   $   $   $   $ 1,077
 
2018
In millions Q1 Q2 Q3 Q4 YTD
Power generation $ 571 $ 666 $ 636 $ 713 $ 2,586
Industrial 414 483 380 386 1,663
Generator technologies 89   97   91   100   377
Total sales $ 1,074   $ 1,246   $ 1,107   $ 1,199   $ 4,626
 

High-horsepower unit shipments by engine classification were as follows:

2019          
Units Q1 Q2 Q3 Q4 YTD
Power generation 2,100 2,100
Industrial 1,600         1,600
Total units 3,700         3,700
 
2018
Units Q1 Q2 Q3 Q4 YTD
Power generation 2,100 2,300 2,400 2,300 9,100
Industrial 1,700   2,100   1,900   1,900   7,600
Total units 3,800   4,400   4,300   4,200   16,700

Source: Cummins Inc.

Jon Mills
Director – External Communications
(317) 658-4540
jon.mills@cummins.com

© 2019 Cummins Inc.,Box 3005, Columbus, IN 47202-3005 U.S.A