Cummins Reports Record Third Quarter Financial Performance, Remains on Track for Fifth Consecutive Year of Record Sales and Profits
COLUMBUS, Ind.--(BUSINESS WIRE)--
Cummins Inc. (NYSE: CMI) today reported its highest third quarter sales and profits ever, and second best quarter in its history, led by strong gains internationally that more than offset continued weakness in the Company's North American consumer markets.
Third quarter sales of $3.69 billion were 10 percent higher than $3.37 billion during the same period in 2007. Net income rose 24 percent to $229 million, or $1.17 a share, compared to $184 million, or $0.92 a share a year ago. Earnings Before Interest and Taxes (EBIT) increased 24 percent to $380 million, from $306 million in the third quarter of 2007.
All four of the Company's business segments improved their sales and Segment EBIT compared to the same period in 2007. Power Generation and Distribution had the largest percentage sales gains compared to last year, while the Components and Power Generation segments both saw their Segment EBIT as a percentage of sales increase significantly in the quarter.
Non-U.S. sales accounted for 61 percent of the Company's revenues in the third quarter, compared to 52 percent a year ago. Cummins' international business was particularly strong in the Power Generation segment, where sales grew 29 percent outside North America, and the Distribution segment, which saw a 28 percent increase outside North America in the quarter.
"Despite the significant challenges facing the U.S. economy and signs of economic weakness in Europe, the Company performed extremely well in the third quarter," said Cummins Chairman and Chief Executive Officer Tim Solso. "Even more importantly, we continue to meet or exceed our profitability targets as we grow our sales. These results, which keep us on track for a fifth straight year of record financial performance, are further proof that our strategy of diversifying our product line and expanding our geographic customer base is working.
"While we expect the fourth quarter to bring more economic challenges - especially in the U.S. and Europe - Cummins has never been better positioned to ride out a turbulent economy than it is today," Solso added. "Our debt is less than 15 percent of our total capital. We have healthy cash balances and our business operations continue to generate cash. We also have a $1.1 billion revolving credit line for additional liquidity."
Despite the continuing economic softness in some markets, Cummins expects revenue to grow in 2008 by 12 percent from last year, down from earlier guidance of 15 percent, and to earn an EBIT margin of 10 percent on its sales.
Among the third quarter highlights:
-- Cummins improved its market share in the North American
heavy-duty truck and bus markets.
-- The Company continued to see strong international demand for
its medium-duty truck engines, especially in Latin America.
-- Cummins Power Generation experienced significant growth in
China, India, Africa, the Middle East and Latin America,
compared to the same period in 2007.
-- Sales of exhaust aftertreatment products made by Cummins
Emission Solutions showed strong growth, especially in North
America.
-- Joint venture income of $66 million is the highest ever for
the third quarter.
-- For the fourth year in a row, Cummins was named to the Dow
Jones Sustainability Index, which represents the top 10
percent of the world's largest 2,500 companies in corporate
sustainability.
-- Cummins repurchased 1.4 million shares of stock during the
quarter and increased its dividend by 40 percent.
Despite its strong overall performance, the Company is experiencing significant declines in some of its consumer markets as the U.S. economy continues to deteriorate. Revenue from the light-duty automotive and recreational vehicle markets fell 56 percent, compared to the same period in 2007, as engine shipments to Chrysler for the heavy-duty Dodge Ram pickup fell 75 percent. Within Power Generation, sales in the consumer line of business fell 34 percent in the quarter, driven primarily by sharply lower sales to the recreational vehicle and residential standby generator markets in the U.S.
Economic conditions in the U.S. and Europe are not going to improve in the fourth quarter. Cummins is closely monitoring the economic situation around the world and is taking steps to appropriately adjust spending and investment levels to ensure that the Company meets its financial commitments in the future.
"We have experience in managing through difficult economic times, and we will be proactive in monitoring our costs very closely in the short term, even as we continue to invest in profitable growth opportunities," said Chief Financial Officer Pat Ward. "With our strong balance sheet, positive cash flow and available credit facilities we are well positioned to manage through the downturn in the economy, while delivering the products our customers expect and the financial returns our investors demand."
Third quarter details
Engine Segment
Sales of $2.28 billion were 6 percent higher than $2.15 billion in the same period in 2007, while Segment EBIT increased 3 percent to $160 million, or 7.0 percent of sales, from $155 million, or 7.2 percent of sales.
Sales to the heavy duty truck market increased 21 percent, driven by market share gains in North America. Medium-duty truck and bus market sales rose 13 percent, led by strong demand in Brazil and share gains in the North American bus engine market. Sales to the industrial engine markets increased 19 percent. The increases in these and other markets were partially offset by the dramatic drop in sales in the North American light-duty automotive and recreational vehicle markets.
Power Generation
Sales of $888 million increased 14 percent from $776 million a year ago. Segment EBIT rose 30 percent to $108 million, or 12.2 percent of sales, from $83 million, or 10.7 percent of sales.
Sales to the commercial power generation markets, the largest business in the segment, increased 25 percent, led by a 90 percent growth in sales in China, 42 percent growth in Latin America and 36 percent sales growth in India. The alternator and rental businesses also had strong sales gains.
Components
Sales of $801 million were 8 percent higher than $741 million during the third quarter of 2007, as Segment EBIT increased 79 percent to $61 million, or 7.6 percent of sales, from $34 million, or 4.6 percent of sales.
The segment continued to see strong sales gains from the turbocharger and Emission Solutions businesses, and profitability improvements from all four lines of business as pricing and manufacturing efficiency improved. Emission Solutions sales increased 27 percent in the quarter, while turbocharger sales rose 9 percent.
Distribution
Sales rose 47 percent in the quarter to $581 million, from $395 million in the same period in 2007. The increase reflects $80 million from the acquisition of three previously independent Cummins distributors; absent the acquisitions sales increased 27 percent during the quarter.
Strong engine sales in Europe and Africa, power generation in the South Pacific and Singapore, and service revenue gains in the South Pacific - primarily for mining equipment - led the organic growth.
Segment EBIT increased 33 percent to $61 million, or 10.5 percent of sales, from $46 million, or 11.6 percent of sales, a year ago. Segment EBIT gains due to stronger sales and improved margins were partially offset by unfavorable currency translation during the quarter.
Earnings webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. 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.
About Cummins
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. Cummins reported net income of $739 million on sales of $13.05 billion in 2007. Press releases can be found on the Web at www.cummins.com.
Presentation of Non-GAAP Financial Information
EBIT is a non-GAAP measure used in this release. EBIT 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.
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 the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's 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, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)
Three months ended
--------------------------------------
September 28, June 29, September 30,
2008 2008 2007
------------- -------- -------------
Millions (except per share amounts)
NET SALES $3,693 $3,887 $3,372
Cost of sales 2,873 3,008 2,720
------------- -------- -------------
GROSS MARGIN 820 879 652
OPERATING EXPENSES AND INCOME
Selling, general and
administrative expenses 388 370 340
Research, development and
engineering expenses 113 104 82
Equity, royalty and interest
income from investees 66 69 58
Flood damage expense -- 6 --
Other operating (expense)
income, net (2) -- 1
------------- -------- -------------
OPERATING INCOME 383 468 289
Interest income 4 4 9
Interest expense 10 12 14
Other (expense) income, net (7) (3) 8
------------- -------- -------------
INCOME BEFORE INCOME TAXES AND
MINORITY INTERESTS 370 457 292
Income tax expense 123 147 97
Minority interests in income of
consolidated subsidiaries 18 17 11
------------- -------- -------------
NET INCOME $ 229 $ 293 $ 184
============= ======== =============
EARNINGS PER COMMON SHARE
Basic $ 1.18 $ 1.50 $ 0.93
Diluted $ 1.17 $ 1.49 $ 0.92
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 194.9 195.2 198.2
Diluted 196.5 196.6 199.8
CASH DIVIDENDS DECLARED PER
COMMON SHARE $0.175 $0.125 $0.125
(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 INCOME
(Unaudited) (a)
Nine months ended
---------------------------
September 28, September 30,
2008 2007
------------- -------------
Millions
(except per share amounts)
NET SALES $11,054 $9,532
Cost of sales 8,648 7,658
------------- -------------
GROSS MARGIN 2,406 1,874
OPERATING EXPENSES AND INCOME
Selling, general and administrative
expenses 1,109 937
Research, development and engineering
expenses 320 236
Equity, royalty and interest income from
investees 202 146
Flood damage expense 6 --
Other operating (expense) income, net (3) 6
------------- -------------
OPERATING INCOME 1,170 853
Interest income 14 27
Interest expense 33 44
Other (expense) income, net (20) 23
------------- -------------
INCOME BEFORE INCOME TAXES AND MINORITY
INTERESTS 1,131 859
Income tax expense 372 284
Minority interests in income of
consolidated subsidiaries 47 34
------------- -------------
NET INCOME $ 712 $ 541
============= =============
EARNINGS PER COMMON SHARE
Basic $ 3.65 $ 2.71
Diluted $ 3.62 $ 2.70
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 195.1 199.4
Diluted 196.5 200.7
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.425 $0.305
(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)
September 28, December 31,
2008 2007
------------- ------------
Millions
(except par value)
ASSETS
Current assets
Cash and cash equivalents $ 572 $ 577
Marketable securities 83 120
Accounts and notes receivable, net 2,303 1,998
Inventories 1,991 1,692
Deferred income taxes 308 276
Prepaid expenses and other current assets 191 152
----------- ----------
Total current assets 5,448 4,815
----------- ----------
Long-term assets
Property, plant and equipment 4,484 4,313
Accumulated depreciation (2,744) (2,668)
----------- ----------
Property, plant and equipment, net 1,740 1,645
----------- ----------
Investments and advances related to
equity method investees 590 514
Goodwill and other intangible assets, net 577 538
Deferred income taxes and other assets 630 683
----------- ----------
Total assets $ 8,985 $ 8,195
=========== ==========
LIABILITIES
Current liabilities
Current portion of long-term debt and
loans payable $ 80 $ 119
Accounts payable (principally trade) 1,446 1,263
Current portion of accrued product
warranty 376 337
Accrued compensation, benefits and
retirement costs 404 441
Other accrued expenses 672 551
----------- ----------
Total current liabilities 2,978 2,711
----------- ----------
Long-term liabilities
Long-term debt 587 555
Pensions and other postretirement
benefits 571 633
Other liabilities and deferred revenue 704 594
----------- ----------
Total liabilities 4,840 4,493
----------- ----------
MINORITY INTERESTS 253 293
----------- ----------
SHAREHOLDERS' EQUITY
Common stock, $2.50 par value, 500 shares
authorized, 221.5 and 220.4 shares
issued 1,784 1,719
Retained earnings 3,281 2,660
Treasury stock, at cost, 20.2 and 18.2
shares (711) (593)
Common stock held by employee benefits
trust, at cost, 5.6 and 6.5 shares (68) (79)
Unearned compensation (6) (11)
Accumulated other comprehensive loss
Defined benefit postretirement plans (363) (378)
Other (25) 91
----------- ----------
Total accumulated other
comprehensive loss (388) (287)
----------- ----------
Total shareholders' equity 3,892 3,409
----------- ----------
Total liabilities, minority interests and
shareholders' equity $ 8,985 $ 8,195
=========== ==========
(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)
Nine months ended
---------------------------
September 28, September 30,
2008 2007
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES Millions
Net income $ 712 $ 541
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 233 215
Net gain on disposal of property, plant
and equipment (3) (8)
Deferred income taxes 38 69
Equity in earnings of investees, net of
dividends (80) (55)
Minority interest in income of
consolidated subsidiaries 47 34
Pension expense 54 73
Pension contributions (94) (144)
Other post-retirement benefits expense,
net of cash payments (11) (22)
Stock-based compensation expense 27 20
Excess tax benefits on stock-based
awards (12) (11)
Translation and hedging activities 15 (19)
Changes in current assets and
liabilities, net of acquisitions and
dispositions:
Accounts and notes receivable (310) (222)
Inventories (334) (329)
Other current assets (35) (22)
Accounts payable 198 218
Accrued expenses 206 121
Changes in long-term liabilities 78 65
Other, net (4) (1)
------------ ------------
Net cash provided by operating activities 725 523
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (330) (182)
Investments in internal use software (53) (46)
Proceeds from disposals of property,
plant and equipment 20 33
Investments in and advances to equity
investees (51) (27)
Acquisition of businesses, net of cash
acquired (142) (20)
Proceeds from the sale of an equity
investment 64 --
Investments in marketable securities--
acquisitions (264) (307)
Investments in marketable securities--
liquidations 281 295
Purchases of other investments (54) (52)
Other, net (23) (17)
------------ ------------
Net cash used in investing activities (552) (323)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 91 3
Payments on borrowings and capital lease
obligations (111) (122)
Net borrowings under short-term credit
agreements 5 (14)
Distributions to minority shareholders (14) (15)
Dividend payments on common stock (86) (63)
Proceeds from sale of common stock held
by employee benefit trust 52 --
Repurchases of common stock (123) (210)
Excess tax benefits on stock-based awards 12 11
Other, net 3 (17)
------------ ------------
Net cash used in financing activities (171) (427)
------------ ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (7) 11
------------ ------------
Net decrease in cash and cash equivalents (5) (216)
Cash and cash equivalents at beginning of
year 577 840
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 572 $ 624
============ ============
(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
Engine Generation Components Distribution
------- ---------- ---------- -------------
Millions
Three months ended
September 28, 2008
External sales $1,927 $ 653 $ 535 $ 578
Intersegment sales 352 235 266 3
----- ----- ----- -----
Total sales 2,279 888 801 581
Depreciation and
amortization(2) 43 9 16 6
Research, development
and engineering expense 75 11 27 --
Equity, royalty and
interest income from
investees 26 6 3 31
Interest income 2 1 1 --
Segment EBIT 160 108 61 61
Three months ended June
29, 2008
External sales $2,030 $ 692 $ 584 $ 581
Intersegment sales 356 246 271 --
----- ----- ----- -----
Total sales 2,386 938 855 581
Depreciation and
amortization(2) 46 11 18 7
Research, development
and engineering expense 70 10 24 --
Equity, royalty and
interest income from
investees 32 6 3 28
Interest income 2 1 1 --
Segment EBIT 221 115 77 68
Three months ended
September 30, 2007
External sales $1,890 $ 594 $ 494 $ 394
Intersegment sales 263 182 247 1
----- ----- ----- -----
Total sales 2,153 776 741 395
Depreciation and
amortization(2) 45 11 14 3
Research, development
and engineering expense 56 8 18 --
Equity, royalty and
interest income from
investees 24 5 3 26
Interest income 6 1 1 1
Segment EBIT 155 83 34 46
Nine months ended
September 28, 2008
External sales $5,842 $1,926 $1,686 $1,600
Intersegment sales 1,032 687 790 7
----- ----- ----- -----
Total sales 6,874 2,613 2,476 1,607
Depreciation and
amortization(2) 133 31 49 17
Research, development
and engineering expense 215 31 74 --
Equity, royalty and
interest income from
investees 91 17 10 84
Interest income 7 3 3 1
Segment EBIT 575 301 175 178
Nine months ended
September 30, 2007
External sales $5,267 $1,730 $1,465 $1,070
Intersegment sales 760 490 690 2
----- ----- ----- -----
Total sales 6,027 2,220 2,155 1,072
Depreciation and
amortization(2) 132 31 43 8
Research, development
and engineering expense 159 25 52 --
Equity, royalty and
interest income from
investees 66 12 1 67
Interest income 20 4 2 1
Segment EBIT 469 248 106 131
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
-
Non-segment
items(1) Total
------------ -------
Millions
Three months ended September 28, 2008
External sales $ -- $ 3.693
Intersegment sales (856) --
------ ------
Total sales (856) 3,693
Depreciation and amortization(2) -- 74
Research, development and engineering expense -- 113
Equity, royalty and interest income from investees -- 66
Interest income -- 4
Segment EBIT (10) 380
Three months ended June 29, 2008
External sales $ -- $ 3,887
Intersegment sales (873) --
------ ------
Total sales (873) 3,887
Depreciation and amortization(2) -- 82
Research, development and engineering expense -- 104
Equity, royalty and interest income from investees -- 69
Interest income -- 4
Segment EBIT (12) 469
Three months ended September 30, 2007
External sales $ -- $ 3,372
Intersegment sales (693) --
------ ------
Total sales (693) 3,372
Depreciation and amortization(2) -- 73
Research, development and engineering expense -- 82
Equity, royalty and interest income from investees -- 58
Interest income -- 9
Segment EBIT (12) 306
Nine months ended September 28, 2008
External sales $ -- $11,054
Intersegment sales (2,516) --
------ ------
Total sales (2,516) 11,054
Depreciation and amortization(2) -- 230
Research, development and engineering expense -- 320
Equity, royalty and interest income from investees -- 202
Interest income -- 14
Segment EBIT (65) 1,164
Nine months ended September 30, 2007
External sales $ -- $ 9,532
Intersegment sales (1,942) --
------ ------
Total sales (1,942) 9,532
Depreciation and amortization(2) -- 214
Research, development and engineering expense -- 236
Equity, royalty and interest income from investees -- 146
Interest income -- 27
Segment EBIT (51) 903
(1) Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses including flood related expenses.
(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
-------------------------------------
September 28, June 29, September 30,
2008 2008 2007
------------- -------- --------------
Millions
Segment EBIT $ 380 $ 469 $ 306
Less:
Interest expense 10 12 14
------------- -------- --------------
Income before income taxes and
minority interests $ 370 $ 457 $ 292
============= ======== ==============
Nine months ended
---------------------------
September 28, September 30,
2008 2007
------------- -------------
Millions
Segment EBIT $ 1,164 $ 903
Less:
Interest expense 33 44
------------- -------------
Income before income taxes and minority
interests $ 1,131 $ 859
============= =============
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Earnings before interest, taxes and minority interests (EBIT)
We define EBIT as earnings before interest expense, provision for
income taxes and minority interests in earnings 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. Below is a reconciliation of EBIT, a
non-GAAP financial measure, to our consolidated net income, for each
of the applicable periods:
Three Months Ended
--------------------------------------
September 28, June 29, September 30,
2008 2008 2007
------------- -------- -------------
Millions
Earnings before interest
expense, income taxes and
minority interests $ 380 $ 469 $ 306
EBIT as a percentage of net
sales 10.3% 12.1% 9.1%
Less:
Interest expense 10 12 14
Income tax expense 123 147 97
Minority interests in
income of consolidated
subsidiaries 18 17 11
------------- -------- -------------
Net income $ 229 $ 293 $ 184
============= ======== =============
Net income as a percentage
of net sales 6.2% 7.5% 5.5%
Nine Months Ended
----------------------------
September 28, September 30,
2008 2007
------------- -------------
Millions
Earnings before interest expense,
income taxes and minority interests $1,164 $ 903
EBIT as a percentage of net sales 10.5% 9.5%
Less:
Interest expense 33 44
Income tax expense 372 284
Minority interests in income of
consolidated subsidiaries 47 34
------------- -------------
Net income $ 712 $ 541
============= =============
Net income as a percentage of net sales 6.4% 5.7%
We believe EBIT is a useful measure of our operating performance for
the periods presented as it illustrates our operating performance
without regard to financing methods, capital structure or income
taxes. This measure is not in accordance with, or an alternative for,
accounting principles generally accepted in the United States of
America (GAAP) and may not be consistent with measures used by other
companies. It should be considered supplemental data.
Sales
$Millions Q1 Q2 Q3 Q4 YTD
------- ------- ------- ------- -------
2008
Engine Business
Heavy-Duty Truck 536 672 630 1,838
Medium Duty Truck+Bus 397 422 406 1,225
Light Duty Auto+RV 275 205 170 650
Industrial 733 804 788 2,325
Stationary Power 268 283 285 836
---------------------------------------
TOTAL ENGINE BUSINESS 2,209 2,386 2,279 0 6,874
Power Generation 787 938 888 2,613
Components 820 855 801 2,476
Distributors 445 581 581 1,607
Eliminations (787) (873) (856) (2,516)
---------------------------------------
TOTAL 3,474 3,887 3,693 0 11,054
=======================================
2007
Engine Business
Heavy-Duty Truck 424 473 520 531 1,948
Medium Duty Truck+Bus 206 320 359 398 1,283
Light Duty Auto+RV 288 418 388 247 1,341
Industrial 617 665 661 733 2,676
Stationary Power 230 233 225 246 934
---------------------------------------
TOTAL ENGINE BUSINESS 1,765 2,109 2,153 2,155 8,182
Power Generation 675 769 776 840 3,060
Components 657 757 741 777 2,932
Distributors 309 368 395 468 1,540
Eliminations (589) (660) (693) (724) (2,666)
---------------------------------------
TOTAL 2,817 3,343 3,372 3,516 13,048
=======================================
----------------------------------------------------------------------
----------------------------------------------------------------------
Engine Shipments
Units Q1 Q2 Q3 Q4 YTD
------- ------- ------- ------- -------
2008
Midrange 114,200 114,800 102,300 331,300
Heavy-duty 24,700 31,700 29,400 85,800
High Horsepower 4,600 5,500 5,400 15,500
---------------------------------------
TOTAL 143,500 152,000 137,100 0 432,600
=======================================
2007
Midrange 107,200 133,500 130,500 115,600 486,800
Heavy-duty 19,000 23,800 24,800 23,800 91,400
High Horsepower 4,300 4,700 4,600 4,900 18,500
---------------------------------------
TOTAL 130,500 162,000 159,900 144,300 596,700
=======================================
Source: Cummins Inc.
Released October 31, 2008