Cummins Reports Improving Sales and Earnings Despite Continued Widespread Economic Weakness
- Company Increases 2009 Sales and Profit Guidance; Expects Challenging Environment in Early 2010 -
COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported third quarter sales of $2.53 billion and net income of $95 million, or $0.48 a share, down considerably from last year's record third quarter results. However, the Company significantly improved its profitability and cash position from the second quarter despite the global recession that continues to affect demand in most markets.
Sales fell 31 percent and net income attributable to Cummins Inc. fell 59 percent compared to the same period last year. Third quarter Earnings Before Interest and Taxes (EBIT) of $155 million, or 6.1 percent of sales, decreased 59 percent from a year ago.
The third quarter results include $22 million of restructuring and other charges associated with the cost of job-reduction actions. Excluding the charges, EBIT was $177 million, or 7.0 percent of sales, and net income attributable to Cummins Inc. was $110 million, or $0.56 a share.
Compared to the second quarter, sales increased 4 percent on the strength of improving demand in China, India and Brazil and a short-term increase in on-highway engine and components sales in the United States. Those increases more than offset quarter-to-quarter sales declines in the Company's Power Generation and Distribution businesses.
Despite the modest increase in sales, net income attributable to Cummins rose 70 percent, EBIT increased 42 percent and the Company improved its cash position by $152 million from the second quarter. The significantly improved profitability and cash position from the second quarter are largely the result of lower spending, better utilization of manufacturing capacity and reduced inventory.
"Given the continued weakness in many of our markets, the Company performed extremely well in the third quarter," said Cummins Chairman and Chief Executive Officer Tim Solso. "The decisive actions we have taken over the past several months have allowed us to remain profitable, generate cash and invest in the Company's future in the face of the worst recession in decades."
Compared to the same period a year ago, sales fell by at least 25 percent in all four of the Company's operating segments, with the largest declines coming in the Power Generation and Engine segments. Despite the continued weakness in demand, all four segments were profitable in the third quarter.
The recent economic improvement in China, India and Brazil benefitted Cummins during the quarter, due to the Company's longstanding strong position in all three countries. In addition, the Company saw an increase in engine and components sales to the medium- and heavy-duty truck engines markets in the U.S. compared to the second quarter in advance of new emissions standards that take effect in January 2010. However, based on current orders and market intelligence, Cummins expects very low demand in these markets during the first half of 2010.
"While we saw improvement in some markets in the third quarter, we expect the economic climate to remain challenging until late 2010 - especially in the United States and Europe," Solso said. "As we look ahead to the recovery, however, Cummins continues to be extremely well positioned to take advantage of a number of opportunities and market trends that offer the potential for significant long-term growth."
The Company's work to reduce costs and working capital, most notably inventory, has allowed it to significantly improve its cash position throughout 2009. Cummins also continues to invest in its most critical projects, especially those associated with the launch of new emission-compliant products in 2010 and with fuel economy improvements.
The Company remains on track to launch its new EPA-compliant products in North America in January 2010. Cummins has tested its 2010 heavy-duty truck engines with approximately 50 major customers across all duty cycles and in a wide variety of weather conditions. By the time production begins, Cummins' new heavy-duty and mid-range engines will have logged approximately 5 million test miles.
Recent field test results have exceeded the Company's expectations and customer feedback on the new engines has been positive. Those tests indicate that heavy-duty truck engine customers can expect up a 5 percent improvement over Cummins' current industry-leading fuel economy, while mid-range engine customers can expect to see up to a 3 percent improvement.
At the end of the third quarter, the Company had $686 million in cash and cash equivalents on hand, compared to $534 million at the end of the second quarter and $426 million at the end of 2008.
"We remain very focused on our priorities of generating positive cash flow while at the same time investing in those projects that are critical to our success in 2010 and beyond," said Tom Linebarger, President and Chief Operating Officer. "We will continue to manage the Company very conservatively over the next few quarters as we work to position ourselves to emerge from the recession an even stronger company."
Based on the third quarter results and Company forecasts for the remainder of the year, Cummins today is raising its sales and profit guidance for 2009. The Company now expects 2009 sales to be slightly less than 30 percent lower than 2008 and anticipates EBIT of 6 percent of sales for the year, excluding the restructuring charges. Previously, the Company said it expected 2009 sales to be slightly more than 30 percent lower than last year and EBIT to be 5 percent of sales, excluding restructuring charges.
Third quarter details (all comparisons are to same period in 2008 unless otherwise noted)
Engine Segment
-- Sales - $1.44 billion, down 37 percent
-- Segment EBIT - $61 million (4.2 percent of sales), compared to $160
million (7.0 percent of sales)
-- Revenues in heavy-duty truck down 22 percent; medium-duty truck and bus
down 28 percent; light-duty/RV down 29 percent; industrial down 48
percent
-- Compared to last year, sales declined sharply in nearly every geographic
market due to the global recession, but the segment returned to
profitability this quarter after reporting $4 million operating loss in
second quarter.
Power Generation
-- Sales - $549 million, down 38 percent
-- Segment EBIT - $23 million (4.2 percent of sales), down 79 percent from
$108 million (12.2 percent of sales)
-- Commercial product sales down 43 percent; commercial projects down 38
percent; Consumer products down 35 percent; Alternators down 29 percent;
Power Electronics down 6 percent
-- Commercial markets most affected by economic slowdown in the United
Kingdom, Middle East, North and Latin America; Consumer decline led by
continued weakness in portable generator, marine and commercial mobile
generator markets.
Components
-- Sales - $591 million, down 26 percent
-- Segment EBIT - $31 million (5.2 percent of sales), down 49 percent from
$61 million (7.6 percent of sales)
-- Turbocharger sales down 30 percent; Filtration down 31 percent; Emission
Solutions down 7 percent; Fuel Systems down 30 percent
-- Sales and profit decline driven primarily by large volume drop from OEM
customers in North America and Europe. Segment sales and profitability
increased significantly from second quarter 2009, as segment returned to
profitability after reporting a $10 million operating loss in the
previous quarter.
Distribution
-- Sales - $422 million, down 27 percent
-- Segment EBIT - $55 million (13.0 percent of sales), compared to $61
million (10.5 percent of sales)
-- Sales were affected by decreased global demand and unfavorable foreign
currency movements, which affected segment sales by 5 percentage points
-- Improved Segment EBIT margin a result of lower discretionary spending
and continued strength in joint venture earnings.
Joint Ventures
-- Total income - $57 million, down 14 percent from $66 million during same
period in 2008, but flat compared to second quarter 2009
-- Distribution JV income of $32 million was flat compared to a year ago
-- Engine JVs in China declined due to lower demand compared to year ago
Presentation of Non-GAAP Financial Information
EBIT and Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding restructuring and other charges are non-GAAP measure used in this release. Each 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 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 $755 million on sales of $14.3 billion in 2008. 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
September 27, June 28, September 28,
In millions (except per share 2009 2009 2008
amounts)
NET SALES $ 2,530 $ 2,431 $ 3,693
Cost of sales 2,027 1,983 2,873
GROSS MARGIN 503 448 820
OPERATING EXPENSES AND INCOME
Selling, general and administrative 304 287 388
expenses
Research, development and 90 79 113
engineering expenses
Equity, royalty and interest income 57 57 66
from investees
Restructuring and other charges 22 7
Other operating income (expense), 3 (11 ) (2 )
net
OPERATING INCOME 147 121 383
Interest income 2 1 4
Interest expense 9 10 10
Other income (expense), net 6 (13 ) (7 )
INCOME BEFORE INCOME TAXES 146 99 370
Income tax expense 36 29 123
NET INCOME 110 70 247
Less: net income attributable to 15 14 18
noncontrolling interests
NET INCOME ATTRIBUTABLE TO CUMMINS $ 95 $ 56 $ 229
INC.
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO CUMMINS INC.
Basic $ 0.48 $ 0.28 $ 1.18
Diluted $ 0.48 $ 0.28 $ 1.17
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 197.4 197.1 194.9
Diluted 197.8 197.4 196.5
CASH DIVIDENDS DECLARED PER COMMON $ 0.175 $ 0.175 $ 0.175
SHARE
(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)
Nine months ended
September 27, September 28,
In millions (except per share amounts) 2009 2008
NET SALES $ 7,400 $ 11,054
Cost of sales 6,004 8,648
GROSS MARGIN 1,396 2,406
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 891 1,109
Research, development and engineering expenses 254 320
Equity, royalty and interest income from 147 202
investees
Restructuring and other charges 95
Other operating (expense) income, net (6 ) (9 )
OPERATING INCOME 297 1,170
Interest income 5 14
Interest expense 26 33
Other (expense) income, net (10 ) (20 )
INCOME BEFORE INCOME TAXES 266 1,131
Income tax expense 72 372
NET INCOME 194 759
Less: net income attributable to 36 47
noncontrolling interests
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 158 $ 712
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
CUMMINS INC.
Basic $ 0.80 $ 3.65
Diluted $ 0.80 $ 3.62
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 197.1 195.1
Diluted 197.4 196.5
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.525 $ 0.425
(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 27, December 31,
In millions (except par value) 2009 2008
ASSETS
Current assets
Cash and cash equivalents $ 686 $ 426
Marketable securities 148 77
Accounts and notes receivable, net 1,731 1,782
Inventories 1,461 1,783
Deferred income taxes 363 347
Prepaid expenses and other current assets 254 298
Total current assets 4,643 4,713
Long-term assets
Property, plant and equipment 4,736 4,539
Accumulated depreciation (2,877 ) (2,698 )
Property, plant and equipment, net 1,859 1,841
Investments and advances related to equity method 538 588
investees
Goodwill 363 362
Other intangible assets, net 229 223
Deferred income taxes 400 491
Other assets 323 301
Total assets $ 8,355 $ 8,519
LIABILITIES
Current liabilities
Current portion of long-term debt and loans payable $ 60 $ 69
Accounts payable (principally trade) 875 1,009
Current portion of accrued product warranty 422 434
Accrued compensation, benefits and retirement costs 335 364
Other accrued expenses 619 763
Total current liabilities 2,311 2,639
Long-term liabilities
Long-term debt 621 629
Pensions 425 574
Postretirement benefits other than pensions 455 452
Other liabilities and deferred revenue 740 745
Total liabilities 4,552 5,039
EQUITY
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares 1,842 1,793
authorized, 222.1 and 221.7 shares issued
Retained earnings 3,340 3,288
Treasury stock, at cost, 20.3 and 20.4 shares (713 ) (715 )
Common stock held by employee benefits trust, at (43 ) (61 )
cost, 3.5 and 5.1 shares
Unearned compensation (1 ) (5 )
Accumulated other comprehensive loss
Defined benefit postretirement plans (741 ) (798 )
Other (121 ) (268 )
Total accumulated other comprehensive loss (862 ) (1,066 )
Total Cummins Inc. shareholders' equity 3,563 3,234
Noncontrolling interests 240 246
Total equity 3,803 3,480
Total liabilities and equity $ 8,355 $ 8,519
(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 27, September 28,
In millions 2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 194 $ 759
Adjustments to reconcile net income to net cash
provided by operating activities:
Restructuring and other charges, net of cash 21
payments
Depreciation and amortization 238 233
Deferred income taxes (11 ) 38
Equity in income of investees, net of dividends 56 (80 )
Pension expense, net of pension contributions (49 ) (40 )
Other post-retirement benefits expense, net of (18 ) (11 )
cash payments
Stock-based compensation expense 16 27
Excess tax deficiencies (benefits) on 2 (12 )
stock-based awards
Translation and hedging activities 33 15
Changes in current assets and liabilities, net
of acquisitions and dispositions:
Accounts and notes receivable 89 (310 )
Inventories 360 (334 )
Other current assets 32 (35 )
Accounts payable (155 ) 198
Accrued expenses (185 ) 206
Changes in long-term liabilities 103 78
Other, net 4 (7 )
Net cash provided by operating activities 730 725
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (204 ) (330 )
Investments in internal use software (24 ) (53 )
Proceeds from disposals of property, plant and 8 20
equipment
Investments in and advances to equity investees (5 ) (51 )
Acquisition of businesses, net of cash acquired (2 ) (142 )
Proceeds from the sale of an equity investee 64
Investments in marketable (234 ) (264 )
securities--acquisitions
Investments in marketable 171 281
securities--liquidations
Purchases of other investments (54 ) (54 )
Cash flows from derivatives not designated as (21 ) (24 )
hedges
Other, net 1 1
Net cash used in investing activities (364 ) (552 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 11 91
Payments on borrowings and capital lease (60 ) (111 )
obligations
Net borrowings under short-term credit (4 ) 5
agreements
Distributions to noncontrolling interests (16 ) (14 )
Dividend payments on common stock (106 ) (86 )
Proceeds from sale of common stock held by 54 52
employee benefit trust
Repurchases of common stock (123 )
Excess tax (deficiencies) benefits on (2 ) 12
stock-based awards
Other, net 3 3
Net cash used in financing activities (120 ) (171 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND 14 (7 )
CASH EQUIVALENTS
Net increase (decrease) in cash and cash 260 (5 )
equivalents
Cash and cash equivalents at beginning of year 426 577
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 686 $ 572
(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 Power Components Distribution Non-segment Total
Generation items(1)
Three months
ended
September 27,
2009
External $ 1,270 $ 444 $ 395 $ 421 $ -- $ 2,530
sales
Intersegment 169 105 196 1 (471 )
sales
Total sales 1,439 549 591 422 (471 ) 2,530
Depreciation
and 49 13 18 5 85
amortization
(2)
Research,
development
and 59 9 22 90
engineering
expense
Equity,
royalty and
interest 16 5 4 32 57
income from
investees
Restructuring
and other 22 22
charges
Interest 1 1 2
income
Segment EBIT 61 23 31 55 (15 ) 155
Three months
ended June
28, 2009
External $ 1,133 $ 481 $ 355 $ 462 $ -- $ 2,431
sales
Intersegment 173 129 147 1 (450 )
sales
Total sales 1,306 610 502 463 (450 ) 2,431
Depreciation
and 45 11 17 4 77
amortization
(2)
Research,
development
and 51 8 20 79
engineering
expense
Equity,
royalty and
interest 17 6 4 30 57
income from
investees
Restructuring
and other 7 7
charges
Interest 1 1
income
Segment EBIT (4 ) 41 (10 ) 55 27 109
Three months
ended
September 28,
2008
External $ 1,927 $ 653 $ 535 $ 578 $ -- $ 3,693
sales
Intersegment 352 235 266 3 (856 )
sales
Total sales 2,279 888 801 581 (856 ) 3,693
Depreciation
and 43 9 16 6 74
amortization
(2)
Research,
development
and 75 11 27 113
engineering
expense
Equity,
royalty and
interest 26 6 3 31 66
income from
investees
Interest 2 1 1 4
income
Segment EBIT 160 108 61 61 (10 ) 380
Nine months
ended
September 27,
2009
External $ 3,608 $ 1,402 $ 1,096 $ 1,294 $ $ 7,400
sales
Intersegment 629 414 527 4 (1,574 )
sales
Total sales 4,237 1,816 1,623 1,298 (1,574 ) 7,400
Depreciation
and 135 35 53 14 237
amortization
(2)
Research,
development
and 168 25 61 254
engineering
expense
Equity,
royalty and
interest 30 16 9 92 147
income from
investees
Restructuring
and other 95 95
charges
Interest 2 1 1 1 5
income
Segment EBIT 41 133 22 168 (72 ) 292
Nine months
ended
September 28,
2008
External $ 5,842 $ 1,926 $ 1,686 $ 1,600 $ -- $ 11,054
sales
Intersegment 1,032 687 790 7 (2,516 )
sales
Total sales 6,874 2,613 2,476 1,607 (2,516 ) 11,054
Depreciation
and 133 31 49 17 230
amortization
(2)
Research,
development
and 215 31 74 320
engineering
expense
Equity,
royalty and
interest 91 17 10 84 202
income from
investees
Interest 7 3 3 1 14
income
Segment EBIT 575 301 175 178 (65 ) 1,164
Includes intersegment sales and profit in inventory eliminations and
unallocated corporate expenses. For the three and nine months ended
September 27, 2009, unallocated corporate expenses included restructuring
and other charges of $22 million and $95 million and gains of $8 million and
$5 million related to flood damages. For the three months ended June 28,
(1) 2009, unallocated corporate expenses included restructuring and other
charges of $7 million and a $9 million loss related to flood damage
insurance recoveries. There were no unallocated corporate expenses for the
three months ended September 28, 2008. For the nine months ended September
28, 2008, unallocated corporate expenses included losses of $6 million
related to flood damages.
Depreciation and amortization as shown on a segment basis excludes the
(2) amortization of debt discount that is included in the Condensed Consolidated
Statements of Income as 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 Nine months ended
September 27, June 28, September 28, September 27, September 28,
In 2009 2009 2008 2009 2008
millions
Segment $ 155 $ 109 $ 380 $ 292 $ 1,164
EBIT
Less:
Interest 9 10 10 26 33
expense
Income
before $ 146 $ 99 $ 370 $ 266 $ 1,131
income
taxes
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Earnings before interest, taxes, noncontrolling interests and restructuring
and other charges
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 consolidated net
income attributable to Cummins Inc., for each of the applicable periods:
Three months ended Nine months ended
September June 28, September September September 28,
27, 28, 27,
In millions 2009 2009 2008 2009 2008
Earnings
before
interest
expense,
income taxes $ 177 $ 116 $ 380 $ 387 $ 1,164
and
restructuring
and other
charges
Earnings
before
interest
expense,
income taxes
and 7.0 % 4.8 % 10.3 % 5.2 % 10.5 %
restructuring
and other
charges as a
percentage of
sales
Less:
Restructuring
and other 22 7 95
charges
Earnings
before $ 155 $ 109 $ 380 $ 292 $ 1,164
interest and
income taxes
EBIT as a
percentage of 6.1 % 4.5 % 10.3 % 3.9 % 10.5 %
net sales
Less:
Interest 9 10 10 26 33
expense
Income tax 36 29 123 72 372
expense
Net income 110 70 247 194 759
Less:
Net income
attributable
to 15 14 18 36 47
noncontrolling
interests
Net income
attributable $ 95 $ 56 $ 229 $ 158 $ 712
to Cummins
Inc.
Net income
attributable
to Cummins 3.8 % 2.3 % 6.2 % 2.1 % 6.4 %
Inc. as a
percentage of
net sales
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Net income and diluted earnings per share (EPS) attributable to Cummins Inc.
excluding restructuring and other charges
We believe this is a useful measure of our operating performance for the period
presented as it illustrates our operating performance without regard to
restructuring. 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 restructuring and other charges to Net
income attributable to Cummins Inc. for the three and nine months ended
September 27, 2009, and the three months ended June 28, 2009. There were no
restructuring actions taken in the three or nine months ended September 28,
2008.
Three months ended Nine months ended
September 27, 2009 June 28, 2009 September 27, 2009
In millions Net Income Diluted Net Income Diluted Net Income Diluted EPS
EPS EPS
Net income
attributable
to Cummins
Inc. $ 110 $ 0.56 $ 60 $ 0.30 $ 221 $ 1.12
excluding
restructuring
and other
charges
Less:
Restructuring
and other 15 0.08 4 0.02 63 0.32
charges, net
(1)
Net income
attributable $ 95 $ 0.48 $ 56 $ 0.28 $ 158 $ 0.80
to Cummins
Inc.
During the three and nine months ended September 27, 2009, management
approved and committed to undertake actions, which resulted in a pretax
charge of $22 million and $95 million, respectively. These charges included
employee-related liabilities for severance and benefits of approximately $10
million and $76 million, net of changes in estimate, exit costs of
approximately zero and $7 million, and pension and other postretirement
(1) benefit curtailment charges of $12 million and $12 million, for the three
and nine months ended, respectively. During the three months ended June 28,
2009, management approved actions, which resulted in a pretax charge of $7
million, including employee-related liabilities for severance and benefits
of approximately $8 million. In the three months ended June 28, 2009, there
was also a favorable change in estimate for previously recorded
restructuring actions of $1 million.
SUPPLEMENTAL INFORMATION
In 2009, the Power Generation segment reorganized its reporting structure to include the following businesses: Commercial Products, Alternators, Commercial Projects, Power Electronics and Consumer. Sales by quarter for our Power Generation segment by business for the years 2008 and 2007 were as follows:
2008 Three months ended Year ended
In millions March 30, June 29, 2008 September 28, December 31, December 31,
2008 2008 2008 2008
Commercial $ 444 $ 555 $ 559 $ 558 $ 2,116
Products
Alternator 156 178 174 178 686
Commercial 86 111 63 68 328
Projects
Power 27 31 35 39 132
Electronics
Consumer 74 63 57 44 238
Total sales $ 787 $ 938 $ 888 $ 887 $ 3,500
2007 Three months ended Year ended
In millions April 1, July 1, 2007 September 30, December 31, December 31,
2007 2007 2007 2007
Commercial $ 383 $ 448 $ 449 $ 481 $ 1,761
Products
Alternator 132 156 163 172 623
Commercial 45 44 49 81 219
Projects
Power 26 26 28 28 108
Electronics
Consumer 89 95 87 78 349
Total sales $ 675 $ 769 $ 776 $ 840 $ 3,060
Sales
$Millions Q1 Q2 Q3 Q4 YTD
2009
Engine Business
Heavy-Duty 394 395 493 1,282
Truck
Medium Duty 229 240 294 763
Truck+Bus
Light Duty 156 94 120 370
Auto+RV
Industrial 467 440 407 1,314
Stationary 246 137 125 508
Power
TOTAL
ENGINE 1,492 1,306 1,439 4,237
BUSINESS
Power Generation 657 610 549 1,816
Components 530 502 591 1,623
Distributors 413 463 422 1,298
Eliminations (653 ) (450 ) (471 ) (1,574 )
TOTAL 2,439 2,431 2,530 7,400
2008
Engine Business
Heavy-Duty 536 672 630 470 2,308
Truck
Medium Duty 397 422 406 325 1,550
Truck+Bus
Light Duty 275 205 170 154 804
Auto+RV
Industrial 733 804 788 704 3,029
Stationary 268 283 285 283 1,119
Power
TOTAL
ENGINE 2,209 2,386 2,279 1,936 8,810
BUSINESS
Power Generation 787 938 888 887 3,500
Components 820 855 801 676 3,152
Distributors 445 581 581 557 2,164
Eliminations (787 ) (873 ) (856 ) (768 ) (3,284 )
TOTAL 3,474 3,887 3,693 3,288 14,342
Engine
Shipments
Units Q1 Q2 Q3 Q4 YTD
2009
Midrange 60,600 49,200 58,800 168,600
Heavy-duty 16,600 16,400 20,600 53,600
High 3,900 3,200 2,600 9,700
Horsepower
TOTAL 81,100 68,800 82,000 231,900
2008
Midrange 114,200 114,800 102,400 86,900 418,300
Heavy-duty 24,700 31,700 29,400 22,500 108,300
High 4,600 5,500 5,300 5,200 20,600
Horsepower
TOTAL 143,500 152,000 137,100 114,600 547,200
Source: Cummins Inc.
Released October 30, 2009