Cummins Announces First Quarter 2015 Results
First quarter revenues of $4.7 billion, EBIT of 11.9 percent of sales; Full year revenue expected to grow between 2 and 4 percent and EBIT to be in the range of 13.5 to 14.0 percent of sales
Columbus, IND., April 28, 2015 (GLOBE NEWSWIRE) -- Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2015.
First quarter revenue of $4.7 billion increased 7 percent from the same quarter in 2014. The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America. Currency negatively impacted revenues by 3 percent compared to last year, primarily due to a stronger US dollar.
Revenues in North America increased 17 percent while international sales declined by 6 percent. Within international markets, lower revenues in Europe and Brazil more than offset growth in China.
Earnings before interest and taxes (EBIT) increased to $562 million for the first quarter or 11.9 percent of sales, up from $528 million or 12.0 percent of sales a year ago.
Net income attributable to Cummins grew 14 percent in the first quarter to $387 million ($2.14 per diluted share), compared to $338 million ($1.83 per diluted share) in the first quarter of 2014. The tax rate in the first quarter of 2015, including discrete items, was 26.3 percent.
"Record profitability in our Components Segment, execution of our distributor acquisition strategy, the successful launch of new products in China and improved results in our Power Generation Business all contributed to earnings growth in the first quarter. Strong performance in these areas more than offset the impact of weak demand in a number of international markets." said Cummins Chairman and CEO Tom Linebarger. "We expect profitability for the remainder of the year to increase from first quarter levels as revenues improve and we capture more benefits from cost reduction activities. During the quarter, we returned $277 million to shareholders in the form of dividends and share repurchase, consistent with our plans to return 50 percent of full year operating cash flow."
Based on the current forecast, Cummins expects full year 2015 revenues to grow between 2 and 4 percent, and EBIT to be in the range of 13.5 to 14.0 percent of sales.
Other recent highlights:
- For the eighth consecutive year, Cummins was named one of the world's most ethical companies by The Ethisphere Institute
- Forbes magazine named Cummins 21st in its Top 25 Employers in America list
- Cummins was selected by Halliburton as the engine supplier for the first EPA Tier 4 Final-compliant fracking spread in North America
- The Company repurchased one million shares in the first quarter
First quarter 2015 detail (all comparisons to same period in 2014)
Engine Segment
- Sales - $2.6 billion, up 1 percent
- Segment EBIT - $253 million, or 9.7 percent of sales, compared to $269 million or 10.5 percent of sales
- Increased demand in on-highway markets in North America and power generation offset weaker demand in construction, marine and mining markets
Distribution Segment
- Sales - $1.5 billion, up 55 percent overall and down 2 percent excluding acquisitions
- Segment EBIT - $88 million, or 6.0 percent of sales, compared to $76 million or 8.0 percent of sales
- Higher revenues were primarily driven by acquisitions and stronger demand in Asia Pacific, partially offset by the negative impact of currency movements
- Segment EBIT included $8m of amortization of intangibles related to prior year acquisitions
Components Segment
- Sales - $1.3 billion, up 6 percent
- Segment EBIT - $195 million, or 15.0 percent of sales, compared to $167 million or 13.6 percent of sales
- Stronger demand in on-highway markets in North America and China
Power Generation Segment
- Sales - $680 million, up 6 percent
- Segment EBIT - $49 million, or 7.2 percent of sales, compared to $25 million or 3.9 percent of sales
- Higher revenues in Asia, Africa and the Middle East more than offset weaker demand in Eastern Europe
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 54,600 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 7,200 dealer locations. Cummins earned $1.65 billion on sales of $19.2 billion in 2014. 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/cummininc.
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 2015. 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 2014 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 | March 29, 2015 | March 30, 2014 | ||||||
| NET SALES | $4,709 | $4,406 | ||||||
| Cost of sales | 3,514 | 3,307 | ||||||
| GROSS MARGIN | 1,195 | 1,099 | ||||||
| OPERATING EXPENSES AND INCOME | ||||||||
| Selling, general and administrative expenses | 517 | 485 | ||||||
| Research, development and engineering expenses | 195 | 190 | ||||||
| Equity, royalty and interest income from investees | 68 | 90 | ||||||
| Other operating income (expense), net | (3) | (1) | ||||||
| OPERATING INCOME | 548 | 513 | ||||||
| Interest income | 5 | 5 | ||||||
| Interest expense | 14 | 17 | ||||||
| Other income, net | 9 | 10 | ||||||
| INCOME BEFORE INCOME TAXES | 548 | 511 | ||||||
| Income tax expense | 144 | 153 | ||||||
| CONSOLIDATED NET INCOME | 404 | 358 | ||||||
| Less: Net income attributable to noncontrolling interests | 17 | 20 | ||||||
| NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $387 | $338 | ||||||
| EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||||||
| Basic | $2.14 | $1.83 | ||||||
| Diluted | $2.14 | $1.83 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| Basic | 180.6 | 184.3 | ||||||
| Diluted | 181.0 | 184.7 | ||||||
| CASH DIVIDENDS DECLARED PER COMMON SHARE | $0.78 | $0.625 | ||||||
___________________________________________________________
(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 | March 29, 2015 | December 31, 2014 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $1,997 | $2,301 | ||||||
| Marketable securities | 115 | 93 | ||||||
| Total cash, cash equivalents and marketable securities | 2,112 | 2,394 | ||||||
| Accounts and notes receivable, net | 3,240 | 2,946 | ||||||
| Inventories | 2,936 | 2,866 | ||||||
| Prepaid expenses and other current assets | 712 | 849 | ||||||
| Total current assets | 9,000 | 9,055 | ||||||
| Long-term assets | ||||||||
| Property, plant and equipment | 7,046 | 7,123 | ||||||
| Accumulated depreciation | (3,409) | (3,437) | ||||||
| Property, plant and equipment, net | 3,637 | 3,686 | ||||||
| Investments and advances related to equity method investees | 968 | 981 | ||||||
| Goodwill | 470 | 479 | ||||||
| Other intangible assets, net | 340 | 343 | ||||||
| Prepaid pensions | 714 | 637 | ||||||
| Other assets | 607 | 595 | ||||||
| Total assets | $15,736 | $15,776 | ||||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Loans payable | $71 | $86 | ||||||
| Accounts payable (principally trade) | 2,013 | 1,881 | ||||||
| Current maturities of long-term debt | 33 | 23 | ||||||
| Current portion of accrued product warranty | 379 | 363 | ||||||
| Accrued compensation, benefits and retirement costs | 390 | 508 | ||||||
| Deferred revenue | 393 | 401 | ||||||
| Other accrued expenses | 778 | 759 | ||||||
| Total current liabilities | 4,057 | 4,021 | ||||||
| Long-term liabilities | ||||||||
| Long-term debt | 1,602 | 1,589 | ||||||
| Pensions | 290 | 289 | ||||||
| Postretirement benefits other than pensions | 359 | 369 | ||||||
| Other liabilities and deferred revenue | 1,359 | 1,415 | ||||||
| Total liabilities | $7,667 | $7,683 | ||||||
| EQUITY | ||||||||
| Cummins Inc. shareholders' equity | ||||||||
| Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued | $2,146 | $2,139 | ||||||
| Retained earnings | 9,792 | 9,545 | ||||||
| Treasury stock, at cost, 41.0 and 40.1 shares | (2,975) | (2,844) | ||||||
| Common stock held by employee benefits trust, at cost, 1.0 and 1.1 shares | (12) | (13) | ||||||
| Accumulated other comprehensive loss | (1,245) | (1,078) | ||||||
| Total Cummins Inc. shareholders' equity | 7,706 | 7,749 | ||||||
| Noncontrolling interests | 363 | 344 | ||||||
| Total equity | $8,069 | $8,093 | ||||||
| Total liabilities and equity | $15,736 | $15,776 | ||||||
___________________________________________________________
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
| Three months ended | ||||||||
| In millions | March 29, 2015 | March 30, 2014 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Consolidated net income | $404 | $358 | ||||||
| Adjustments to reconcile consolidated net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 128 | 105 | ||||||
| Deferred income taxes | (1) | 22 | ||||||
| Equity in income of investees, net of dividends | (53) | (52) | ||||||
| Pension contributions in excess of expense | (96) | (100) | ||||||
| Other post-retirement benefits payments in excess of expense | (8) | (8) | ||||||
| Stock-based compensation expense | 5 | 10 | ||||||
| Translation and hedging activities | 7 | (3) | ||||||
| Changes in current assets and liabilities, net of acquisitions | ||||||||
| Accounts and notes receivable | (276) | (232) | ||||||
| Inventories | (98) | (135) | ||||||
| Other current assets | 20 | 2 | ||||||
| Accounts payable | 147 | 302 | ||||||
| Accrued expenses | (35) | (95) | ||||||
| Changes in other liabilities and deferred revenue | 59 | 50 | ||||||
| Other, net | (30) | 39 | ||||||
| Net cash provided by operating activities | 173 | 263 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (100) | (107) | ||||||
| Investments in internal use software | (8) | (14) | ||||||
| Investments in and advances to equity investees | 10 | (6) | ||||||
| Acquisitions of businesses, net of cash acquired | (11) | (90) | ||||||
| Investments in marketable securities--acquisitions | (95) | (84) | ||||||
| Investments in marketable securities--liquidations | 71 | 108 | ||||||
| Cash flows from derivatives not designated as hedges | 4 | 5 | ||||||
| Other, net | 4 | 1 | ||||||
| Net cash used in investing activities | (125) | (187) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from borrowings | 2 | 7 | ||||||
| Payments on borrowings and capital lease obligations | (18) | (25) | ||||||
| Distributions to noncontrolling interests | (1) | (13) | ||||||
| Dividend payments on common stock | (140) | (115) | ||||||
| Repurchases of common stock | (137) | (419) | ||||||
| Other, net | (2) | (37) | ||||||
| Net cash used in financing activities | (296) | (602) | ||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (56) | 5 | ||||||
| Net decrease in cash and cash equivalents | (304) | (521) | ||||||
| Cash and cash equivalents at beginning of year | 2,301 | 2,699 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $1,997 | 2,178 | ||||||
___________________________________________________________
(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 Generation | Non-segment Items (1) |
Total | ||||||||||||||||||||
| Three months ended March 29, 2015 | ||||||||||||||||||||||||||
| External sales | $1,889 | $1,469 | $931 | $420 | $-- | $4,709 | ||||||||||||||||||||
| Intersegment sales | 707 | 7 | 368 | 260 | (1,342) | -- | ||||||||||||||||||||
| Total sales | 2,596 | 1,476 | 1,299 | 680 | (1,342) | 4,709 | ||||||||||||||||||||
| Depreciation and amortization(2) | 58 | 27 | 26 | 16 | -- | 127 | ||||||||||||||||||||
| Research, development and engineering expenses | 114 | 3 | 61 | 17 | -- | 195 | ||||||||||||||||||||
| Equity, royalty and interest income from investees | 30 | 20 | 9 | 9 | -- | 68 | ||||||||||||||||||||
| Interest income | 2 | 1 | 1 | 1 | -- | 5 | ||||||||||||||||||||
| Segment EBIT | 253 | 88 | 195 | 49 | (23) | 562 | ||||||||||||||||||||
| Segment EBIT as a percentage of total sales | 9.7% | 6.0% | 15.0% | 7.2% | 11.9% | |||||||||||||||||||||
| Three months ended March 30, 2014 | ||||||||||||||||||||||||||
| External sales | $2,090 | $942 | $922 | $452 | $-- | $4,406 | ||||||||||||||||||||
| Intersegment sales | 473 | 8 | 308 | 187 | (976) | -- | ||||||||||||||||||||
| Total sales | 2,563 | 950 | 1,230 | 639 | (976) | 4,406 | ||||||||||||||||||||
| Depreciation and amortization(2) | 51 | 16 | 26 | 12 | -- | 105 | ||||||||||||||||||||
| Research, development and engineering expenses | 116 | 2 | 53 | 19 | -- | 190 | ||||||||||||||||||||
| Equity, royalty and interest income from investees | 32 | 41 | 9 | 8 | -- | 90 | ||||||||||||||||||||
| Interest income | 2 | 1 | 1 | 1 | -- | 5 | ||||||||||||||||||||
| Segment EBIT | 269 | 76 | (3) | 167 | 25 | (9) | 528 | |||||||||||||||||||
| Segment EBIT as a percentage of total sales | 10.5% | 8.0% | 13.6% | 3.9% | 12.0% | |||||||||||||||||||||
| (1) | Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 29, 2015 and March 30, 2014. | |||||||||||||||||||||||||
| (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 were $1 million and less than a million for the three months ended March 29, 2015 and March 30, 2014, respectively. | |||||||||||||||||||||||||
| (3) | Distribution segment EBIT included a gain of $6 million on the fair value adjustment resulting from the acquisition of a controlling interest in a North American distributor for the three months ended March 30, 2014. | |||||||||||||||||||||||||
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 | ||||||||
| In millions | March 29, 2015 | March 30, 2014 | ||||||
| Total EBIT | $562 | $528 | ||||||
| Less: Interest expense | 14 | 17 | ||||||
| Income before income taxes | $548 | $511 | ||||||
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 reporting periods was as follows:
| Three months ended | ||||||||
| In millions | March 29, 2015 | March 30, 2014 | ||||||
| Distribution Entities | ||||||||
| North American distributors | $10 | $32 | ||||||
| Komatsu Cummins Chile, Ltda. | 7 | 6 | ||||||
| All other distributors | 1 | 1 | ||||||
| Manufacturing Entities | ||||||||
| Dongfeng Cummins Engine Company, Ltd. | 14 | 14 | ||||||
| Chongqing Cummins Engine Company, Ltd. | 12 | 11 | ||||||
| Beijing Foton Cummins Engine Co., Ltd. (Light-duty) | 8 | 6 | ||||||
| Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty) | (1) | (6) | ||||||
| All other manufacturers | 7 | 15 | ||||||
| Cummins share of net income | 58 | 79 | ||||||
| Royalty and interest income | 10 | 11 | ||||||
| Equity, royalty and interest income from investees | $68 | $90 | ||||||
NOTE 2. INCOME TAXES
The effective tax rate for the three month period ended March 29, 2015, was 26.3 percent. This tax rate included an $18 million discrete tax benefit to reflect the release of reserves for uncertain tax positions related to a favorable federal audit settlement.
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding special items
We believe this is a useful measure of our operating performance for the periods presented as it illustrates our operating performance without regard to special items including tax adjustments. 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. The following table reconciles net income attributable to Cummins Inc. to net income attributable to Cummins Inc. excluding special items for the following periods:
| Three months ended | |||||||||||||||||
| March 29, 2015 | March 30, 2014 | ||||||||||||||||
| In millions | Net Income | Diluted EPS | Net Income | Diluted EPS | |||||||||||||
| Net income attributable to Cummins Inc. | $387 | $2.14 | $338 | $1.83 | |||||||||||||
| Less | |||||||||||||||||
| Tax benefit | 18 | 0.10 | -- | -- | |||||||||||||
| Net income attributable to Cummins Inc. excluding special items | $369 | $2.04 | $338 | $1.83 | |||||||||||||
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Earnings before interest, taxes and noncontrolling interests
We define EBIT as earnings 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. This measure is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of EBIT to "Net income attributable to Cummins Inc.," for each of the applicable periods:
| Three months ended | ||||||||
| In millions | March 29, 2015 | March 30, 2014 | ||||||
| Earnings before interest expense and income taxes | $562 | $528 | ||||||
| EBIT as a percentage of net sales | 11.9% | 12.0% | ||||||
| Less | ||||||||
| Interest expense | 14 | 17 | ||||||
| Income tax expense | 144 | 153 | ||||||
| Consolidated net income | 404 | 358 | ||||||
| Less | ||||||||
| Net income attributable to noncontrolling interests | 17 | 20 | ||||||
| Net income attributable to Cummins Inc. | $387 | $338 | ||||||
| Net income attributable to Cummins Inc. as a percentage of net sales | 8.2% | 7.7% | ||||||
CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)
Engine Segment Net Sales by Market
In the first quarter of 2015, our Engine segment reorganized its reporting structure to include the following markets: heavy-duty truck, medium-duty truck and bus, light-duty automotive (pickup and light commercial vehicle), industrial and stationary power. Sales by market for our Engine segment by business (including 2014 and 2013 reorganized balances) were as follows:
| 2015 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Heavy-duty truck | $757 | $-- | $-- | $-- | $757 | |||||||||||||||
| Medium-duty truck and bus | 608 | -- | -- | -- | 608 | |||||||||||||||
| Light-duty automotive | 381 | -- | -- | -- | 381 | |||||||||||||||
| Industrial | 616 | -- | -- | -- | 616 | |||||||||||||||
| Stationary power | 234 | -- | -- | -- | 234 | |||||||||||||||
| Total sales | $2,596 | $-- | $-- | $-- | $2,596 | |||||||||||||||
| 2014 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Heavy-duty truck | $718 | $769 | $801 | $784 | $3,072 | |||||||||||||||
| Medium-duty truck and bus | 575 | 605 | 599 | 652 | 2,431 | |||||||||||||||
| Light-duty automotive | 391 | 392 | 396 | 388 | 1,567 | |||||||||||||||
| Industrial | 669 | 739 | 768 | 775 | 2,951 | |||||||||||||||
| Stationary power | 210 | 239 | 252 | 240 | 941 | |||||||||||||||
| Total sales | $2,563 | $2,744 | $2,816 | $2,839 | $10,962 | |||||||||||||||
| 2013 | ||||||||||||||||||||
| In millions | YTD | |||||||||||||||||||
| Heavy-duty truck | $2,618 | |||||||||||||||||||
| Medium-duty truck and bus | 2,064 | |||||||||||||||||||
| Light-duty automotive | 1,465 | |||||||||||||||||||
| Industrial | 2,921 | |||||||||||||||||||
| Stationary power | 945 | |||||||||||||||||||
| Total sales | $10,013 | |||||||||||||||||||
Unit shipments by engine classification (including unit shipments to Power Generation):
| 2015 | |||||||||||||||
| Units | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||
| Midrange | 112,400 | -- | -- | -- | 112,400 | ||||||||||
| Heavy-duty | 28,700 | -- | -- | -- | 28,700 | ||||||||||
| High-horsepower | 3,500 | -- | -- | -- | 3,500 | ||||||||||
| Total units | 144,600 | -- | -- | -- | 144,600 | ||||||||||
| 2014 | |||||||||||||||
| Units | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||
| Midrange | 118,900 | 118,700 | 117,700 | 115,900 | 471,200 | ||||||||||
| Heavy-duty | 28,800 | 30,300 | 32,300 | 30,700 | 122,100 | ||||||||||
| High-horsepower | 3,400 | 3,900 | 3,900 | 3,600 | 14,800 | ||||||||||
| Total units | 151,100 | 152,900 | 153,900 | 150,200 | 608,100 | ||||||||||
Distribution Segment Sales by Business
| 2015 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Parts and filtration | $573 | $-- | $-- | $-- | $573 | |||||||||||||||
| Engines | 321 | -- | -- | -- | 321 | |||||||||||||||
| Power generation | 298 | -- | -- | -- | 298 | |||||||||||||||
| Service | 284 | -- | -- | -- | 284 | |||||||||||||||
| Total sales | $1,476 | $-- | $-- | $ | $-- | $1,476 | ||||||||||||||
| 2014 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Parts and filtration | $382 | $461 | $4491 | $590 | $1,924 | |||||||||||||||
| Engines | 174 | 249 | 270 | 368 | 1,061 | |||||||||||||||
| Power generation | 193 | 278 | 279 | 413 | 1,163 | |||||||||||||||
| Service | 201 | 250 | 252 | 323 | 1,026 | |||||||||||||||
| Total sales | $950 | $1,238 | $1,292 | $1,694 | $5,174 | |||||||||||||||
Component Segment Sales by Business
| 2015 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Emission solutions | $613 | $-- | $-- | $-- | $613 | |||||||||||||||
| Turbo technologies | 301 | -- | -- | -- | 301 | |||||||||||||||
| Filtration | 255 | -- | -- | -- | 255 | |||||||||||||||
| Fuel systems | 130 | -- | -- | -- | 130 | |||||||||||||||
| Total sales | $1,299 | $-- | $-- | $-- | $1,299 | |||||||||||||||
| 2014 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Emission solutions | $543 | $582 | $598 | $620 | $2,343 | |||||||||||||||
| Turbo technologies | 313 | 307 | 297 | 305 | 1,222 | |||||||||||||||
| Filtration | 265 | 275 | 268 | 267 | 1,075 | |||||||||||||||
| Fuel systems | 109 | 116 | 124 | 129 | 478 | |||||||||||||||
| Total sales | $1,230 | $1,280 | $1,287 | $1,321 | $5,118 | |||||||||||||||
Power Generation Segment Sales by Business
In the first quarter of 2015, our Power Generation segment reorganized its reporting structure to include the following businesses: power systems, alternators and power solutions. Sales for our Power Generation segment by business (including 2014 and 2013 reorganized balances) were as follows:
| 2015 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Power systems | $543 | $-- | $-- | $-- | $543 | |||||||||||||||
| Alternators | 98 | -- | -- | -- | 98 | |||||||||||||||
| Power solutions | 39 | -- | -- | -- | 39 | |||||||||||||||
| Total sales | $680 | $-- | $-- | $-- | $680 | |||||||||||||||
| 2014 | ||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
| Power systems | $510 | $586 | $598 | $606 | $2,300 | |||||||||||||||
| Alternators | 105 | 126 | 115 | 103 | 449 | |||||||||||||||
| Power solutions | 24 | 31 | 41 | 51 | 147 | |||||||||||||||
| Total sales | $639 | $743 | $754 | $760 | $2,896 | |||||||||||||||
| 2013 | ||||||||||||||||||||
| In millions | YTD | |||||||||||||||||||
| Power systems | $2,381 | |||||||||||||||||||
| Alternators | 496 | |||||||||||||||||||
| Power solutions | 154 | |||||||||||||||||||
| Total sales | $3,031 | |||||||||||||||||||
CONTACT: Carole Casto
Executive Director - Corporate Communications
(317) 610-2480
carole.casto@cummins.com
Source: Cummins, Inc.
Released April 28, 2015