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Cummins Announces Second Quarter Results; Raises Outlook for 2017
  • Second quarter revenues of $5.1 billion, GAAP1 Net Income of $424 million
  • EBIT of 12.2 percent of sales, Diluted EPS of $2.53
  • The company expects stronger sales growth with full year 2017 revenues to be up 9 to 11 percent, compared to prior guidance of up 4 to 7 percent
  • EBIT expected to be in the range of 11.75 to 12.5 percent, unchanged from prior guidance

COLUMBUS, Ind.--(BUSINESS WIRE)--Aug. 1, 2017-- Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2017.

Second quarter revenues of $5.1 billion increased 12 percent from the same quarter in 2016. Higher demand for trucks and construction equipment in North America and China, and stronger sales to mining, and oil & gas customers were the main drivers of revenue growth. Currency negatively impacted revenues by approximately 1 percent compared to last year, primarily due to the appreciation of the US dollar. Revenues in North America increased 13 percent and international sales grew 11 percent due to strong demand in China and India.

Net income attributable to Cummins in the second quarter was $424 million ($2.53 per diluted share), compared to $406 million ($2.40 per diluted share) in the same quarter a year ago. The tax rate in the second quarter of 2017 was 26.4 percent.

Earnings before interest and taxes (EBIT) was $620 million, or 12.2 percent of sales, compared to $591 million or 13.1 percent of sales a year ago.

“We delivered strong revenue growth in all four operating segments in the second quarter due to improving conditions in a number of important markets where we also have leading share. Earnings increased due to solid operational performance, partially offset by higher warranty costs that resulted in second quarter EBIT that was below our expectations” said Chairman and CEO Tom Linebarger. “As a result of stronger than expected orders in truck and construction markets in North America and China, and improving demand from global mining customers we have raised our 2017 full year outlook.”

Through the end of the second quarter, the Company has returned $463 million to shareholders in the form of dividends and share repurchase and recently raised its quarterly cash dividend by 5.4 percent. Cummins plans to return 50 percent of its Operating Cash Flow to shareholders in 2017.

The Company continues to execute its strategy to be the leading global powertrain supplier. Cummins and power management company Eaton (NYSE:ETN) have successfully completed the formation of the Eaton Cummins Automated Transmission Technologies joint venture that was announced on April 10, 2017. Cummins and Eaton each own 50 percent of the global joint venture which will design, manufacture, sell and support all future medium-duty and heavy-duty automated transmissions for the commercial vehicle market. Eaton’s current medium-duty automated transmission, Procision®, and next generation heavy-duty automated transmissions, will be part of the business which will also market, sell, and support Eaton’s current generation of automated heavy-duty transmissions to OEM customers in North America. Today marks the first day of operations for the joint venture and the financial results will be consolidated within Cummins’ Components Segment. We are still in the process of completing the purchase accounting associated with our investment in this new venture, as required by GAAP1, but we do not currently expect the joint venture to have a material impact on Cummins’ financial results in 2017.

Based on the current forecast, Cummins expects full year 2017 revenues to be up 9 to 11 percent, higher than the prior forecast of up 4 to 7 percent. EBIT is expected to be in the range of 11.75 to 12.5 percent of sales, unchanged from prior guidance. This forecast excludes the impact of our new Eaton Cummins Automated Transmission Technologies joint venture.

Other recent highlights:

  • Cummins announced the election of two new members to its Board of Directors - Karen Quintos, Chief Customer Officer, Dell Technologies and Rich Freeland, Cummins President and Chief Operating Officer
  • DiversityInc named Cummins one of the Top 50 Companies for Diversity for the eleventh consecutive year. Cummins ranked No. 21 on the 2017 annual list, which included more than 1,000 participating companies
1 Generally Accepted Accounting Principles
 

Second quarter 2017 detail (all comparisons to same period in 2016)

Engine Segment

  • Sales - $2.3 billion, up 15 percent.
  • Segment EBIT - $277 million, or 12 percent of sales, compared to 206 million or 10.3 percent of sales a year ago
  • On-highway revenues increased by 14 percent, and off-highway revenues increased 20 percent primarily due to increased demand in global truck and construction markets

Distribution Segment

  • Sales - $1.7 billion, up 12 percent
  • Segment EBIT - $96 million, or 5.6 percent of sales, compared to $87 million or 5.6 percent of sales
  • Organic sales increased 7 percent and revenue from the acquisition completed in the fourth quarter of 2016 added 6 percent with a negative foreign currency impact of 1 percent

Components Segment

  • Sales - $1.5 billion, up 14 percent.
  • Segment EBIT - $190 million , or 13.1 percent of sales, compared to $190 million or 14.9 percent of sales
  • EBIT in the second quarter of 2017 reflects a $26m unfavorable change in estimate of warranty liability
  • International revenue increased 25 percent, primarily due to China and India, in addition to a 6 percent sales increase in North America due to higher heavy and medium-duty truck production

Power Systems Segment

  • Sales - $1.0 billion, up 10 percent
  • Segment EBIT - $61 million, or 6 percent of sales, compared to $90 million, or 9.8 percent of sales
  • EBIT in the second quarter of 2017 reflects a $31 million accrual for the estimated costs of a quality campaign
  • Increased demand in mining and oil & gas markets was the primary driver of revenue growth

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 55,400 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 7,400 dealer locations. Cummins earned $1.39 billion on sales of $17.5 billion in 2016. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at www.twittter.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 for the full year of 2017. 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 other risks detailed from time to time in our Securities and Exchange Commission filings, including particularly in the Risk Factors section of our 2016 Annual Report on Form 10-K. 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 Securities and Exchange Commission, 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

EBIT 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 EBIT is a measure used internally to assess the performance of the operating units.

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 INCOME
(Unaudited) (a)
 
Three months ended
In millions, except per share amounts

July 2,
2017

  July 3,
2016
NET SALES $ 5,078 $ 4,528
Cost of sales 3,829   3,331
GROSS MARGIN 1,249 1,197
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 596 524
Research, development and engineering expenses 174 155
Equity, royalty and interest income from investees 98 88
Loss contingency 39
Other operating income (expense), net 18  
OPERATING INCOME 595 567
Interest income 5 6
Interest expense 21 16
Other income (expense), net 20   18
INCOME BEFORE INCOME TAXES 599 575
Income tax expense 158   148
CONSOLIDATED NET INCOME 441 427
Less: Net income attributable to noncontrolling interests 17   21
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 424   $ 406
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 2.53 $ 2.41
Diluted $ 2.53 $ 2.40
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 167.3 168.8
Diluted 167.8 169.0
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 1.025 $ 0.975
 
(a)   Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
 
 
  Six months ended

In millions, except per share amounts

July 2,
2017
  July 3,
2016
NET SALES $ 9,667 $ 8,819
Cost of sales 7,290   6,566  
GROSS MARGIN 2,377 2,253
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 1,133 1,014
Research, development and engineering expenses 332 321
Equity, royalty and interest income from investees 206 160
Loss contingency 39
Other operating income (expense), net 23   (2 )
OPERATING INCOME 1,141 1,037
Interest income 7 12
Interest expense 39 35
Other income (expense), net 38   26  
INCOME BEFORE INCOME TAXES 1,147 1,040
Income tax expense 301   280  
CONSOLIDATED NET INCOME 846 760
Less: Net income attributable to noncontrolling interests 26   33  
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 820   $ 727  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 4.90 $ 4.27
Diluted $ 4.88 $ 4.26
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 167.4 170.3
Diluted 167.9 170.5
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 2.05 $ 1.95
 
(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)
 
In millions, except par value July 2,
2017
December 31,
2016
ASSETS
Current assets
Cash and cash equivalents $ 1,293 $ 1,120
Marketable securities 174   260  
Total cash, cash equivalents and marketable securities 1,467 1,380
Accounts and notes receivable, net 3,553 3,025
Inventories 2,982 2,675
Prepaid expenses and other current assets 600   627  
Total current assets 8,602   7,707  
Long-term assets
Property, plant and equipment 7,804 7,635
Accumulated depreciation (4,017 ) (3,835 )
Property, plant and equipment, net 3,787 3,800
Investments and advances related to equity method investees 1,162 946
Goodwill 488 480
Other intangible assets, net 339 332
Pension assets 852 731
Other assets 1,030   1,015  
Total assets $ 16,260   $ 15,011  
 
LIABILITIES
Current liabilities
Accounts payable (principally trade) $ 2,300 $ 1,854
Loans payable 54 41
Commercial paper 134 212
Accrued compensation, benefits and retirement costs 475 412
Current portion of accrued product warranty 392 333
Current portion of deferred revenue 520 468
Other accrued expenses 974 970
Current maturities of long-term debt 45   35  
Total current liabilities 4,894   4,325  
Long-term liabilities
Long-term debt 1,564 1,568
Postretirement benefits other than pensions 318 329
Pensions 327 326
Other liabilities and deferred revenue 1,335   1,289  
Total liabilities $ 8,438   $ 7,837  
 
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.4 shares issued $ 2,184 $ 2,153
Retained earnings 11,517 11,040
Treasury stock, at cost, 54.7 and 54.2 shares (4,586 ) (4,489 )
Common stock held by employee benefits trust, at cost, 0.6 and 0.7 shares (7 ) (8 )
Accumulated other comprehensive loss (1,615 ) (1,821 )
Total Cummins Inc. shareholders’ equity 7,493 6,875
Noncontrolling interests 329   299  
Total equity $ 7,822   $ 7,174  
Total liabilities and equity $ 16,260   $ 15,011  
 
(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)
 
Six months ended
In millions July 2, 2017   July 3, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $ 846 $ 760
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization 284 259
Deferred income taxes 2
Equity in income of investees, net of dividends (132 ) (87 )
Pension contributions in excess of expense (44 ) (82 )
Other post-retirement benefits payments in excess of expense (8 ) (17 )
Stock-based compensation expense 23 20
Restructuring payments (42 )
Loss contingency 39
Translation and hedging activities 31 (45 )
Changes in current assets and liabilities
Accounts and notes receivable (488 ) (252 )
Inventories (264 ) (101 )
Other current assets 21 189
Accounts payable 403 143
Accrued expenses 132 (209 )
Changes in other liabilities and deferred revenue 103 129
Other, net (81 ) 32  
Net cash provided by operating activities 826   738  
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (182 ) (189 )
Investments in internal use software (40 ) (27 )
Investments in and advances to equity investees (64 ) (17 )
Investments in marketable securities—acquisitions (69 ) (379 )
Investments in marketable securities—liquidations 162 237
Cash flows from derivatives not designated as hedges 19 (21 )
Other, net 14   5  
Net cash used in investing activities (160 ) (391 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 2 109
Net (payments) borrowings of commercial paper (78 ) 200
Payments on borrowings and capital lease obligations (29 ) (133 )
Distributions to noncontrolling interests (10 ) (24 )
Dividend payments on common stock (343 ) (333 )
Repurchases of common stock (120 ) (695 )
Other, net 34   (20 )
Net cash used in financing activities (544 ) (896 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 51   (117 )
Net increase (decrease) in cash and cash equivalents 173 (666 )
Cash and cash equivalents at beginning of year 1,120   1,711  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,293   $ 1,045  
 
(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)
 
In millions Engine Distribution Components

Power
Systems

Intersegment
Eliminations (1)

Total
Three months ended July 2, 2017
External sales $ 1,711 $ 1,716 $ 1,064 $ 587 $ $ 5,078
Intersegment sales 596   6   390   430   (1,422 )  
Total sales 2,307 1,722 1,454 1,017 (1,422 ) 5,078
Depreciation and amortization (2) 46 31 38 29 144
Research, development and engineering expenses 63 4 57 50 174
Equity, royalty and interest income from investees 56 13 15 14 98
Interest income 2

 

1 1 1 5
Segment EBIT 277 96 190 61 (4 ) 620
 
Segment EBIT as a percentage of total sales 12.0 % 5.6 % 13.1 % 6.0 % 12.2 %
 
Three months ended July 3, 2016
External sales $ 1,504 $ 1,538 $ 933 $ 553 $ $ 4,528
Intersegment sales 498   6   346   368   (1,218 )  
Total sales 2,002 1,544 1,279 921 (1,218 ) 4,528
Depreciation and amortization (2) 41 29 32 29 131
Research, development and engineering expenses 53 3 51 48 155
Equity, royalty and interest income from investees 46 19 12 11 88
Loss contingency 39 39
Interest income 3 1 1 1 6
Segment EBIT 206 87 190 90 18 591
 
Segment EBIT as a percentage of total sales 10.3 % 5.6 % 14.9 % 9.8 % 13.1 %
                         
(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 July 2, 2017 and July 3, 2016.
(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 Income as "Interest expense."
 
           
In millions Engine Distribution Components

Power
Systems

Intersegment
Eliminations (1)

Total
Six months ended July 2, 2017
External sales $ 3,168 $ 3,353 $ 2,044 $ 1,102 $ $ 9,667
Intersegment sales 1,162   14   754   797   (2,727 )  
Total sales 4,330 3,367 2,798 1,899 (2,727 ) 9,667
Depreciation and amortization (2) 90 61 75 57 283
Research, development and engineering expenses 117 8 107 100 332
Equity, royalty and interest income from investees 128 24 28 26 206
Interest income 3 2 1 1 7
Segment EBIT 506 196 369 118 (3 ) 1,186
 
Segment EBIT as a percentage of total sales 11.7 % 5.8 % 13.2 % 6.2 % 12.3 %
 
Six months ended July 3, 2016
External sales $ 2,993 $ 2,996 $ 1,830 $ 1,000 $ $ 8,819
Intersegment sales 985   11   686   729   (2,411 )  
Total sales 3,978 3,007 2,516 1,729 (2,411 ) 8,819
Depreciation and amortization (2) 80 57 63 58 258
Research, development and engineering expenses 110 7 107 97 321
Equity, royalty and interest income from investees 82 37 20 21 160
Loss contingency 39 39
Interest income 5 2 2 3 12
Segment EBIT 403 174 353 136 9 1,075
 
Segment EBIT as a percentage of total sales 10.1 % 5.8 % 14.0 % 7.9 % 12.2 %
                                   
(1)   Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended July 2, 2017 and July 3, 2016.
(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 Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million for both of the six months ended July 2, 2017 and July 3, 2016.
 

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 Six months ended
In millions July 2,
2017
  July 3,
2016
July 2,
2017
  July 3,
2016
Total segment EBIT $ 620 $ 591 $ 1,186 $ 1,075
Less: Interest expense 21   16   39   35
Income before income taxes $ 599   $ 575   $ 1,147   $ 1,040
 

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 Income for the reporting periods was as follows:

   
Three months ended Six months ended
In millions July 2,
2017
  July 3,
2016
July 2,
2017
  July 3,
2016
Distribution entities
Komatsu Cummins Chile, Ltda. $ 8 $ 8 $ 15 $ 18
North American distributors 6 11
All other distributors 1 1
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd. 22 22 55 40
Dongfeng Cummins Engine Company, Ltd. 19 15 41 22
Chongqing Cummins Engine Company, Ltd. 10 9 19 17
All other manufacturers 27   16   51   32
Cummins share of net income 86 77 181 141
Royalty and interest income 12   11   25   19
Equity, royalty and interest income from investees $ 98   $ 88   $ 206   $ 160
 

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

Earnings before interest, income taxes and noncontrolling interests

We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries. We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBIT for each of the applicable periods:

  Three months ended   Six months ended
In millions

July 2,
2017

 

July 3,
2016

July 2,
2017

 

July 3,
2016

Net income attributable to Cummins Inc. $ 424 $ 406 $ 820 $ 727
 
Net income attributable to Cummins Inc. as a percentage of net sales 8.3 % 9.0 % 8.5 % 8.2 %
 
Add
Net income attributable to noncontrolling interests 17   21   26   33  
Consolidated net income 441   427   846   760  
 
Add
Interest expense 21 16 39 35
Income tax expense 158   148   301   280  
Earnings before interest expense and income taxes $ 620   $ 591   $ 1,186   $ 1,075  
 
EBIT as a percentage of net sales 12.2 % 13.1 % 12.3 % 12.2 %
 

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:

         
2017
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 620 $ 714 $ $ $ 1,334
Medium-duty truck and bus 544 701 1,245
Light-duty automotive 423 429 852
Off-highway 436   463       899
Total sales $ 2,023   $ 2,307   $   $   $ 4,330
 
2016
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 631 $ 622 $ 625 $ 565 $ 2,443
Medium-duty truck and bus 549 600 517 606 2,272
Light-duty automotive 433 394 345 409 1,581
Off-highway 363   386   372   387   1,508
Total sales $ 1,976   $ 2,002   $ 1,859   $ 1,967   $ 7,804
 

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

         
2017
Units Q1 Q2 Q3 Q4 YTD
Heavy-duty 19,200 24,100 43,300
Medium-duty 60,300 71,600 131,900
Light-duty 63,100   65,600       128,700
Total units 142,600   161,300       303,900
 
2016
Units Q1 Q2 Q3 Q4 YTD
Heavy-duty 19,700 20,700 20,100 18,500 79,000
Medium-duty 55,400 62,300 53,400 58,000 229,100
Light-duty 61,700   57,100   49,800   60,000   228,600
Total units 136,800   140,100   123,300   136,500   536,700
 

Distribution Segment Sales by Product Line

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

         
2017
In millions Q1 Q2 Q3 Q4 YTD
Parts $ 745 $ 759 $ $ $ 1,504
Service 319 320 639
Power generation 306 329 635
Engines 275   314       589
Total sales $ 1,645   $ 1,722   $   $   $ 3,367
 
2016
In millions Q1 Q2 Q3 Q4 YTD
Parts $ 648 $ 642 $ 643 $ 694 $ 2,627
Service 299 297 299 320 1,215
Power generation 275 326 291 347 1,239
Engines 241   279   271   309   1,100
Total sales $ 1,463   $ 1,544   $ 1,504   $ 1,670   $ 6,181
 

Component Segment Sales by Business

In the first quarter of 2017, our Components segment reorganized its reporting structure to move an element of the emission solutions business to the fuel systems business to enhance operational, administrative and product development efficiencies. Prior year sales were reclassified to conform with this change.

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

         
2017
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 616 $ 674 $ $ $ 1,290
Turbo technologies 287 307 594
Filtration 277 291 568
Fuel systems 164   182       346
Total sales $ 1,344   $ 1,454   $   $   $ 2,798
 
2016
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 589 $ 603 $ 522 $ 524 $ 2,238
Turbo technologies 265 276 241 254 1,036
Filtration 252 262 244 252 1,010
Fuel systems 131   138   136   147   552
Total sales $ 1,237   $ 1,279   $ 1,143   $ 1,177   $ 4,836
 
2015
In millions YTD
Emission solutions $ 2,449
Turbo technologies 1,141
Filtration 1,010
Fuel systems 572  
Total sales $ 5,172  
 

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

In the first quarter of 2017, our Power Systems segment reorganized its product lines to better reflect how the segment is managed. Prior year sales were reclassified to reflect these changes.

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

         
2017
In millions Q1 Q2 Q3 Q4 YTD
Power generation $ 526 $ 570 $ $ $ 1,096
Industrial 275 353 628
Generator technologies 81   94       175
Total sales $ 882   $ 1,017   $   $   $ 1,899
 
2016
In millions Q1 Q2 Q3 Q4 YTD
Power generation $ 518 $ 602 $ 543 $ 593 $ 2,256
Industrial 215 236 235 255 941
Generator technologies 75   83   78   84   320
Total sales $ 808   $ 921   $ 856   $ 932   $ 3,517
 
2015
In millions YTD
Power generation $ 2,588
Industrial 1,121
Generator technologies 358  
Total sales $ 4,067  
 

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

         
2017
Units Q1 Q2 Q3 Q4 YTD
Power generation 1,900 2,100 4,000
Industrial 1,300   1,700       3,000
Total units 3,200   3,800       7,000
 
2016
Units Q1 Q2 Q3 Q4 YTD
Power generation 1,800 2,200 2,000 1,900 7,900
Industrial 1,000   1,100   1,000   1,300   4,400
Total units 2,800   3,300   3,000   3,200   12,300
 

Source: Cummins Inc.

Cummins Inc.
Carole Casto, 317-610-2480
Vice President – Marketing and Communications
carole.casto@cummins.com

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