Cummins Reports Record Second Quarter Results
-- Raises full-year revenue guidance to $18 billion, EBIT to 14.5 percent
COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported record sales and earnings for the second quarter on strong growth in nearly every global market. The Company's Engine, Components and Distribution segments each delivered record sales and earnings.
Second quarter sales were $4.6 billion, up 45 percent from the same period last year. Earnings before interest and taxes (EBIT) were $775 million and included a $68 million gain on the sale of the exhaust business from our Components segment. Excluding the gain from the sale of the exhaust business, EBIT was $707 million, or 15.2 percent of sales, the highest level and percent of sales the company has reported in any quarterly period in its history.
Net income attributable to Cummins Inc. in the second quarter was $505 million or $2.60 per diluted share. Excluding the $68 million gain ($37 million after tax or $0.19 per share), the Company reported earnings of $2.41 per share compared to $1.25 per share in the second quarter of 2010.
"The Company's performance in the second quarter underscores the success of our long-term strategy to diversify and seek profitable growth across geographies and end markets," says Tim Solso, Chairman and Chief Executive Officer. "As a result of our efforts over the last 10 years, Cummins is better positioned than ever to grow in this global economy."
As a result of the Company's performance in the quarter and its outlook for the remainder of the year, Cummins today increased both its sales and EBIT forecast for 2011. The Company now expects to earn 14.5 percent EBIT on $18 billion in sales in 2011. This forecast excludes any current or future gains from the sale of businesses.
Engine segment sales of $2.9 billion were up 53 percent compared to the same quarter a year ago. They were driven by strong growth in global truck markets and off-highway markets including mining and oil and gas. Engine EBIT was $377 million, or 13 percent of sales.
Within the Engine segment, Cummins' EPA-2010 engines continue to perform well in terms of reliability and fuel economy. In North America, Cummins has shipped 126,000 medium- and heavy-duty engines equipped with Selective Catalytic Reduction aftertreatment devices to truck and bus customers.
The Components segment, driven by recovery in North American on-highway markets, had its first billion-plus sales quarter. Sales of $1 billion were up 42 percent year-over-year, and segment EBIT was a record $120 million or 11.6 percent of sales. The gain on the sale of the exhaust business was not included in the segment results.
The Distribution segment saw a sales increase of 36 percent compared to the second quarter of 2010 to $785 million as a result of strong demand in oil and gas, mining and power generation markets. Segment EBIT of $106 million, or 13.5 percent of sales, was a quarterly record.
Cummins' Power Generation segment had sales of $909 million, a year-over-year increase of 28 percent, while segment EBIT was $105 million or 11.6 percent of sales. Revenue growth was strongest in the U.S., Europe and China.
The Company's non- U.S. markets continued to show strong growth and Cummins had record sales in Brazil, India and China.
"I am very optimistic about Cummins' future," said Tom Linebarger, President and Chief Operating Officer. "We are experiencing strong global demand in most of our markets. Our products are performing very well, we have strong leadership positions, and we are delivering strong profitability in all four businesses."
In other developments:
-- The Company increased its dividend by 52 percent.
-- Cummins repurchased $183 million worth of stock, or 1.6 million shares.
-- Fitch Ratings increased Cummins' credit rating to A-.
Second quarter details (all comparisons to the same period in 2010)
Engine Segment
-- Sales - $2.9 billion, up 53 percent
-- Segment EBIT - $377 million, or 13 percent of sales, compared to $197
million or 10.4 percent of sales
-- Engine shipments to the worldwide medium-duty truck markets were up by
84 percent
-- Shipments to worldwide heavy-duty truck markets were up 159 percent
-- Oil and gas shipments rose 174 percent
Power Generation
-- Sales - $909 million, up 28 percent
-- Segment EBIT - $105 million or 11.6 percent of sales, compared to $76
million or 10.7 percent
-- Commercial products business sales increased because of improving
economic conditions in most regions, particularly in Asia, North
America, Brazil and the U.K.
-- Generator technologies sales increased in most regions, especially in
Western Europe, Eastern Asia and the U.K.
Components
-- Sales - $1.0 billion, up 42 percent
-- EBIT - $120 million, or 11.6 percent of sales, compared to $75 million
or 10.3 percent of sales
-- Emission solutions business sales were driven by higher volume and
technology content in North American EPA 2010 aftertreatment systems and
increased demand for Euro V aftertreatment systems in Europe
-- Turbo technologies business sales were up because of increased demand in
North America, Europe and India from OEMs
Distribution
-- Sales - $785 million, up 36 percent
-- EBIT - $106 million or 13.5 percent of sales, compared to $69 million or
12 percent of sales
-- Revenue growth was driven by strong demand for industrial engines, power
generation equipment and parts
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. 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 employs approximately 40,000 people
worldwide and serves customers in approximately 190 countries and
territories through a network of more than 600 company-owned and
independent distributor locations and approximately 6,000 dealer
locations. Cummins earned $1.0 billion on sales of $13.2 billion in
2010. Press releases can be found on the Web at www.cummins.com.
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
June 26, March 27, June 27,
In millions, except per share amounts 2011 2011 2010
NET SALES $ 4,641 $ 3,860 $ 3,208
Cost of sales 3,438 2,903 2,455
GROSS MARGIN 1,203 957 753
OPERATING EXPENSES AND INCOME
Selling, general and administrative 463 389 354
expenses
Research, development and engineering 157 129 96
expenses
Equity, royalty and interest income 117 96 97
from investees (Note 1)
Gain on sale of business (Note 2) 68 - -
Other operating (expense) income, net - (6 ) (4 )
OPERATING INCOME 768 529 396
Interest income 10 6 5
Interest expense 13 10 9
Other income (expense), net (3 ) (3 ) -
INCOME BEFORE INCOME TAXES 762 522 392
Income tax expense (Note 3) 225 157 122
CONSOLIDATED NET INCOME 537 365 270
Less: Net income attributable to 32 22 24
noncontrolling interests
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 505 $ 343 $ 246
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO CUMMINS INC.
Basic $ 2.61 $ 1.75 $ 1.25
Diluted $ 2.60 $ 1.75 $ 1.25
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 193.8 195.5 196.9
Diluted 194.4 196.1 197.3
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.2625 $ 0.2625 $ 0.175
(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 INCOME
(Unaudited) (a)
Six months ended
In millions, except per share amounts June 26, 2011 June 27, 2010
NET SALES $ 8,501 $ 5,686
Cost of sales 6,341 4,332
GROSS MARGIN 2,160 1,354
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 852 689
Research, development and engineering 286 188
expenses
Equity, royalty and interest income from 213 173
investees (Note 1)
Gain on sale of business (Note 2) 68 -
Other operating (expense) income, net (6 ) (8 )
OPERATING INCOME 1,297 642
Interest income 16 8
Interest expense 23 18
Other income (expense), net (6 ) 17
INCOME BEFORE INCOME TAXES 1,284 649
Income tax expense (Note 3) 382 209
CONSOLIDATED NET INCOME 902 440
Less: Net income attributable to 54 45
noncontrolling interests
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 848 $ 395
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
CUMMINS INC.
Basic $ 4.36 $ 2.00
Diluted $ 4.34 $ 2.00
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 194.6 197.6
Diluted 195.2 197.9
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.5250 $ 0.35
(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)
June 26, December 31,
In millions, except par value 2011 2010
ASSETS
Current assets
Cash and cash equivalents $ 1,111 $ 1,023
Marketable securities 363 339
Total cash, cash equivalents and marketable 1,474 1,362
securities
Accounts and notes receivable, net 2,780 2,243
Inventories 2,275 1,977
Deferred income taxes 305 314
Prepaid expenses and other current assets 303 393
Total current assets 7,137 6,289
Long-term assets
Property, plant and equipment 5,103 4,927
Accumulated depreciation (2,986 ) (2,886 )
Property, plant and equipment, net 2,117 2,041
Investments and advances related to equity method 761 734
investees
Goodwill 348 367
Other intangible assets, net 216 222
Deferred income taxes 115 203
Other assets 619 546
Total assets $ 11,313 $ 10,402
LIABILITIES
Current liabilities
Loans payable $ 59 $ 82
Accounts payable (principally trade) 1,686 1,362
Current portion of accrued product warranty 429 421
Accrued compensation, benefits and retirement 419 468
costs
Deferred revenue 202 182
Taxes payable (including taxes on income) 255 202
Other accrued expenses 663 543
Total current liabilities 3,713 3,260
Long-term liabilities
Long-term debt 702 709
Pensions 110 195
Postretirement benefits other than pensions 432 439
Other liabilities and deferred revenue 839 803
Total liabilities 5,796 5,406
EQUITY
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares 1,968 1,934
authorized, 222.1 and 221.8 shares issued
Retained earnings 5,191 4,445
Treasury stock, at cost, 27.4 and 24.0 shares (1,333 ) (964 )
Common stock held by employee benefits trust, at (23 ) (25 )
cost, 1.9 and 2.1 shares
Accumulated other comprehensive loss
Defined benefit postretirement plans (613 ) (646 )
Other (32 ) (74 )
Total accumulated other comprehensive loss (645 ) (720 )
Total Cummins Inc. shareholders' equity 5,158 4,670
Noncontrolling interests 359 326
Total equity 5,517 4,996
Total liabilities and equity $ 11,313 $ 10,402
(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)
Six months ended
June 26, June 27,
In millions 2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $ 902 $ 440
Adjustments to reconcile consolidated net income to
net cash provided by operating activities:
Depreciation and amortization 159 161
Gain on sale of business (Note 2) (68 ) -
Gain on fair value adjustment for consolidated - (12 )
investee
Deferred income taxes 87 43
Equity in income of investees, net of dividends 2 (49 )
Pension contributions in excess of expense (47 ) (116 )
Excess tax benefits on stock based awards (4 ) (7 )
Other post-retirement benefits payments in excess of (10 ) (7 )
expense
Stock-based compensation expense 18 11
Translation and hedging activities (6 ) 3
Changes in current assets and liabilities, net of
acquisitions and divestitures:
Accounts and notes receivable (513 ) (57 )
Inventories (290 ) (301 )
Other current assets 11 1
Accounts payable 307 239
Accrued expenses 169 (14 )
Changes in other liabilities and deferred revenue 58 66
Other, net (31 ) 26
Net cash provided by operating activities 744 427
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (215 ) (91 )
Investments in internal use software (22 ) (22 )
Proceeds from disposals of property, plant and 5 42
equipment
Investments in and advances to equity investees (20 ) (1 )
Proceeds from sale of business, net of cash sold (Note 111 -
2)
Acquisition of businesses, net of cash acquired - (71 )
Investments in marketable securities--acquisitions (361 ) (358 )
Investments in marketable securities--liquidations 343 278
Cash flows from derivatives not designated as hedges 6 (18 )
Other, net 2 (2 )
Net cash used in investing activities (151 ) (243 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 60 85
Payments on borrowings and capital lease obligations (94 ) (37 )
Net borrowings under short-term credit agreements 11 (1 )
Distributions to noncontrolling interests (26 ) (4 )
Dividend payments on common stock (102 ) (70 )
Repurchases of common stock (373 ) (162 )
Excess tax benefits on stock-based awards 4 7
Other, net 7 9
Net cash used in financing activities (513 ) (173 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH 8 (17 )
EQUIVALENTS
Net increase (decrease) in cash and cash equivalents 88 (6 )
Cash and cash equivalents at beginning of year 1,023 930
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,111 $ 924
(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)
Engine Power Components Distribution Non-segment Total
Generation Items(1)
In millions
Three months
ended June
26, 2011
External $ 2,476 $ 649 $ 741 $ 775 $ - $ 4,641
sales
Intersegment 424 260 291 10 (985) -
sales
Total sales 2,900 909 1,032 785 (985) 4,641
Depreciation
and 44 11 18 5 - 78
amortization
(2)
Research,
development
and 102 12 43 - - 157
engineering
expenses
Equity,
royalty and
interest 49 13 9 46 - 117
income from
investees
Interest 6 3 1 - - 10
income
Segment EBIT 377 105 120 106 67 775
Three months
ended March
27, 2011
External $ 2,006 $ 557 $ 660 $ 637 $ - $ 3,860
sales
Intersegment 385 238 264 5 (892) -
sales
Total sales 2,391 795 924 642 (892) 3,860
Depreciation
and 45 10 18 6 - 79
amortization
(2)
Research,
development
and 80 11 37 1 - 129
engineering
expenses
Equity,
royalty and
interest 42 8 8 38 - 96
income from
investees
Interest 3 1 1 1 - 6
income
Segment EBIT 290 89 105 89 (41) 532
Three months
ended June
27, 2010
External $ 1,595 $ 518 $ 522 $ 573 $ - $ 3,208
sales
Intersegment 304 190 207 3 (704) -
sales
Total sales 1,899 708 729 576 (704) 3,208
Depreciation
and 42 11 21 7 - 81
amortization
(2)
Research,
development
and 62 8 26 - - 96
engineering
expenses
Equity,
royalty and
interest 52 9 6 30 - 97
income from
investees
Interest 2 1 1 1 - 5
income
Segment EBIT 197 76 75 69 (16) 401
Six months
ended June
26, 2011
External $ 4,482 $ 1,206 $ 1,401 $ 1,412 $ - $ 8,501
sales
Intersegment 809 498 555 15 (1,877) -
sales
Total sales 5,291 1,704 1,956 1,427 (1,877) 8,501
Depreciation
and 89 21 36 11 - 157
amortization
(2)
Research,
development
and 182 23 80 1 - 286
engineering
expenses
Equity,
royalty and
interest 91 21 17 84 - 213
income from
investees
Interest 9 4 2 1 - 16
income
Segment EBIT 667 194 225 195 26 1,307
Six months
ended June
27, 2010
External $ 2,768 $ 896 $ 975 $ 1,047 $ - $ 5,686
sales
Intersegment 554 329 384 5 (1,272) -
sales
Total sales 3,322 1,225 1,359 1,052 (1,272) 5,686
Depreciation
and 83 21 41 14 - 159
amortization
(2)
Research,
development
and 122 15 51 - - 188
engineering
expenses
Equity,
royalty and
interest 87 15 11 60 - 173
income from
investees
Interest 4 2 1 1 - 8
income
Segment EBIT 330 110 132 141 (46) 667
Includes intersegment sales and profit in inventory eliminations and
unallocated corporate expenses. The three and six months ended June 26,
2011, include a $68 million gain related to the sale of our exhaust
(1) business from the Components segment. The gain has been excluded from
segment results as it was not considered by management in its evaluation of
operating results for the three and six months ended June 26, 2011. There
were no other significant unallocated corporate expenses for the three and
six months ended June 26, 2011 and June 27, 2010.
Depreciation and amortization as shown on a segment basis excludes the
(2) amortization of debt discount that is included in theCondensed Consolidated
Statements of Incomeas "Interest 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 Income is shown in the table below:
Three months ended Six months ended
June 26, March 27, June 27, June 26, June 27,
In millions 2011 2011 2010 2011 2010
Segment EBIT $ 775 $ 532 $ 401 $ 1,307 $ 667
Less:
Interest expense 13 10 9 23 18
Income before income $ 762 $ 522 $ 392 $ 1,284 $ 649
taxes
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 Six months ended
June 26, March 27, June 27, June 26, June 27,
In millions 2011 2011 2010 2011 2010
Distribution Entities
North American $ 35 $ 30 $ 23 $ 65 $ 46
distributors
Komatsu Cummins Chile, 6 4 3 10 6
Ltda
All other distributors 1 1 1 2 2
Manufacturing Entities
Dongfeng Cummins Engine 26 23 34 49 52
Company, Ltd.
Chongqing Cummins Engine 19 12 13 31 23
Company, Ltd.
Shanghai Fleetguard 4 4 4 8 6
Filter Co., Ltd.
Tata Cummins, Ltd. 3 4 3 7 7
Cummins Westport, Inc. 3 1 2 4 5
Valvoline Cummins, Ltd. 2 2 3 4 5
Komatsu manufacturing (1 ) 2 3 1 5
alliances
Bejing Foton Cummins (1 ) (2 ) (4 ) (3 ) (6 )
Engine Co., Ltd.
All other manufacturers 6 6 4 12 7
Cummins share of net 103 87 89 190 158
income
Royalty and interest 14 9 8 23 15
income
Equity, royalty and
interest income from $ 117 $ 96 $ 97 $ 213 $ 173
investees
NOTE 2. SALE OF EXHAUST BUSINESS
In January 2011, we reached an agreement to sell certain assets and liabilities of our exhaust business which manufactures exhaust products and select components for emission systems for a variety of applications. The transaction closed in the second quarter of 2011. This business was historically included in our Components segment. The sales price was $123 million. We recognized a pre-tax gain on the sale of $68 million, which included an allocation of goodwill of $19 million. The transaction has a working capital adjustment mechanism that will be determined in the third quarter. We do not expect a significant change to the measurement of the gain. The gain has been excluded from segment results as it was not considered by management in its evaluation of operating results for the three and six months ended June 26, 2011.
Sales for this business were $171 million, $126 million and $169 million in 2010, 2009 and 2008, respectively. Income before income taxes for this business was approximately $22 million, $11 million and $19 million in 2010, 2009 and 2008, respectively.
We will enter into supply and other agreements with the operations that will represent ongoing involvement and as such, the results of these operations will not be presented as discontinued operations.
NOTE 3. INCOME TAXES
Our effective tax rate for the year is expected to approximate 29.5 percent, absent any discrete period activity. Our tax rate is generally less than the 35 percent U.S. income tax rate primarily due to lower tax rates on foreign income and research tax credits. The tax rates for the three and six month periods ended June 26, 2011, were 29.5 percent and 29.8 percent. The tax rate for the three and six month periods ended June 26, 2011, includes a discrete tax charge of $4 million related to the enactment of state law changes in Indiana.
Our effective tax rates for the comparable prior year periods were 31.1 percent and 32.2 percent, respectively. The tax rate for the six month period includes a discrete tax charge of $7 million related to the enactment of the "Patient Protection and Affordable Care Act." The lower rate in 2011 compared to 2010 is a result of the geographic mix of earnings.
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT
SUPPLEMENT GAAP
(Unaudited)
Earnings before interest, 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 Six months ended
June 26, March 27, June 27, June 26, June 27,
In millions 2011 2011 2010 2011 2010
Earnings before interest
expense, income taxes
and gain on sale of $ 707 $ 532 $ 401 $ 1,239 $ 667
business
Earnings before interest
expense, income taxes
and
gain on divestiture as
a percentage of net 15.2 % 13.8 % 12.5 % 14.6 % 11.7 %
sales
Add:
Gain on sale of 68 - - 68 -
business
Earnings before interest 775 532 401 1,307 667
expense and income taxes
EBIT as a percentage of 16.7 % 13.8 % 12.5 % 15.4 % 11.7 %
net sales
Less:
Interest expense 13 10 9 23 18
Income tax expense 225 157 122 382 209
Consolidated net income 537 365 270 902 440
Less:
Net income attributable
to noncontrolling 32 22 24 54 45
interests
Net income attributable $ 505 $ 343 $ 246 $ 848 $ 395
to Cummins Inc.
Net income attributable
to Cummins Inc. as a
percentage of net sales 10.9 % 8.9 % 7.7 % 10.0 % 6.9 %
Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding gain on sale of business
We believe this is a useful measure of our operating performance for the periods presented as it illustrates our underlying operating performance and trends without regard to the gain related to the sale of our exhaust business. 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. excluding gain on sale of business to "Net income attributable to Cummins Inc." for the three and six months ended June 26, 2011.
Three months ended Six months ended
June 26, 2011 June 26, 2011
In millions Net Income Diluted EPS Net Income Diluted EPS
Net income attributable to
Cummins Inc. excluding the $ 468 $ 2.41 $ 811 $ 4.15
gain on sale of business
Add:
Gain on sale of business(1) 37 0.19 37 0.19
Net income attributable to $ 505 $ 2.60 $ 848 $ 4.34
Cummins Inc.
(1) The gain has been excluded from operating results as it was not considered
by management in its evaluation of performance for the three and six months
ended June 26, 2011.
CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)
Engine segment net sales by market
2011 In millions Q1 Q2 Q3 Q4 YTD Heavy-duty truck $ 485 $ 693 $ - $ - $ 1,178 Medium-duty truck and bus 474 608 - - 1,082 Light-duty auto and RV 296 310 - - 606 Industrial 855 988 - - 1,843 Stationary power 281 301 - - 582 Total sales $ 2,391 $ 2,900 $ - $ - $ 5,291 2010 In millions Q1 Q2 Q3 Q4 YTD Heavy-duty truck $ 252 $ 340 $ 395 $ 516 $ 1,503 Medium-duty bus and truck 217 352 430 436 1,435 Light-duty auto and RV 207 296 239 280 1,022 Industrial 577 656 700 956 2,889 Stationary power 170 255 305 309 1,039 Total sales $ 1,423 $ 1,899 $ 2,069 $ 2,497 $ 7,888
Unit shipments by engine classification (including unit shipments to Power Generation)
2011 Units Q1 Q2 Q3 Q4 YTD Midrange 109,400 131,300 - - 240,700 Heavy-duty 20,000 29,900 - - 49,900 High-horsepower 4,900 5,700 - - 10,600 Total units 134,300 166,900 - - 301,200 2010 Units Q1 Q2 Q3 Q4 YTD Mid-range 69,100 90,500 93,500 115,800 368,900 Heavy-duty 8,700 14,500 15,200 22,800 61,200 High horsepower 3,400 4,800 4,900 5,400 18,500 Total units 81,200 109,800 113,600 144,000 448,600
Power generation segment sales by business
2011 In millions Q1 Q2 Q3 Q4 YTD Commercial products $ 505 $ 568 $ - $ - $ 1,073 Generator technologies 153 190 - - 343 Commercial projects 55 58 - - 113 Consumer 50 53 - - 103 Power electronics 32 40 - - 72 Total sales $ 795 $ 909 $ - $ - $ 1,704 2010 In millions Q1 Q2 Q3 Q4 YTD Commercial products $ 307 $ 436 $ 519 $ 569 $ 1,831 Generator technologies 107 135 140 167 549 Commercial projects 33 57 49 83 222 Consumer 43 49 49 45 186 Power electronics 27 31 34 39 131 Total sales $ 517 $ 708 $ 791 $ 903 $ 2,919
CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)
Component segment sales by business
2011 In millions Q1 Q2 Q3 Q4 YTD Turbo technologies $ 297 $ 314 $ - $ - $ 611 Emission solutions 273 319 - - 592 Filtration 255 287 - - 542 Fuel systems 99 120 - - 219 Elimination - (8) - - (8) Total sales $ 924 $ 1,032 $ - $ - $ 1,956 2010 In millions Q1 Q2 Q3 Q4 YTD Turbo technologies $ 200 $ 226 $ 239 $ 283 $ 948 Emission solutions 137 170 192 251 750 Filtration 228 250 248 285 1,011 Fuel systems 65 83 90 99 337 Total sales $ 630 $ 729 $ 769 $ 918 $ 3,046
Distribution segment sales by product
2011 In millions Q1 Q2 Q3 Q4 YTD Parts and filtration $ 235 $ 271 $ - $ - $ 506 Power generation 145 195 - - 340 Engines 140 186 - - 326 Service 122 133 - - 255 Total sales $ 642 $ 785 $ - $ - $ 1,427 2010 In millions Q1 Q2 Q3 Q4 YTD Parts and filtration $ 193 $ 221 $ 220 $ 248 $ 882 Power generation 99 135 125 157 516 Engines 83 109 112 162 466 Service 101 111 116 132 460 Total sales $ 476 $ 576 $ 573 $ 699 $ 2,324
Source: Cummins Inc.
Released July 26, 2011