Cummins Announces Second Quarter 2015 Results

Second quarter revenues of $5.0 billion, EBIT of 14.4 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.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2015. Second quarter revenue of $5.0 billion increased 4 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 4 percent compared to last year, primarily due to a stronger US dollar.

Revenues in North America increased 12 percent while international sales declined by 6 percent. Within international markets, sales in Brazil fell the most due to the weak economy.

Earnings before interest and taxes (EBIT) increased to $721 million for the second quarter or 14.4 percent of sales, up from $657 million or 13.6 percent of sales a year ago.

Net income attributable to Cummins grew 6 percent in the second quarter to $471 million ($2.62 per diluted share), compared to $446 million ($2.43 per diluted share) in the second quarter of 2014. The tax rate in the second quarter of 2015, including discrete items, was 29.5 percent.

“We delivered strong results in the second quarter, despite challenging economic conditions in a number of international markets, and we increased cash returned to shareholders,” said Cummins Chairman and CEO Tom Linebarger. “Earnings improved as a result of good performance by our manufacturing and supply chain organizations and solid execution on material cost reduction initiatives. We returned $517 million to shareholders in the form of dividends and share repurchases in the second quarter and we recently announced a 25 percent increase in our quarterly dividend.”

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 ninth consecutive year, Cummins was named one of the Top 50 Companies for Diversity by Diversity Inc.
The Company announced new environmental sustainability goals and pledged to reach an annual reduction of 3.5 million metric tons of carbon dioxide (CO₂) by 2020, which equates to 350 million gallons of fuel.
John Wall, Cummins’ Vice President – Chief Technical Officer, was honored by the California Air Resources Board with the Haagen-Smit Clean Air Award, which recognizes outstanding lifetime achievement in air-quality research, science and technology.
For the fourth consecutive year, Cummins was recognized as a Top 25 Supply Chain company by Gartner.
Cummins announced that John Wall, Vice President – Chief Technical Officer, will be retiring after nearly 30 years with the Company and that Jennifer Rumsey, Vice President of Engineering for Cummins’ Engine Business, will take Wall’s place.
Cummins announced a 25 percent increase in its quarterly dividend.

Second quarter 2015 detail (all comparisons to same period in 2014)

Engine Segment

Sales - $2.8 billion, up 2 percent.
Segment EBIT - $341 million, or 12.2 percent of sales, compared to $311 million or 11.3 percent of sales.
Strong demand in North American truck and bus markets was partially offset by weaker demand in global industrial markets and lower truck demand in Brazil.

Distribution Segment

Sales - $1.5 billion, up 21 percent, down 6 percent excluding acquisitions.
Segment EBIT - $113 million, or 7.6 percent of sales, compared to $126 million or 10.2 percent of sales.
Currency movements negatively impacted sales by 6 percent.
Results in the second quarter of 2014 included a gain of $14 million related to the acquisition of distributors in North America.

Components Segment

Sales - $1.4 billion, up 9 percent.
Segment EBIT - $223 million, or 16.0 percent of sales, compared to $185 million or 14.5 percent of sales.
Stronger demand in on-highway markets in North America, Europe, and China more than offset weakness in Brazil.

Power Generation Segment

Sales - $747 million, up 1 percent.
Segment EBIT - $57 million, or 7.6 percent of sales, compared to $61 million, or 8.2 percent of sales.
Increased international sales in the Middle East, Asia Pacific and India more than offset lower sales in North America and a 4 percent reduction in revenues due to currency movements.

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/cumminsinc.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward looking statements include, without limitation, statements relating to our plans and expectations for our revenues for the full year of 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	June 28, 2015			June 29, 2014
NET SALES	$	5,015		$	4,835
Cost of sales	3,683			3,630
GROSS MARGIN	1,332			1,205

OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	537			513
Research, development and engineering expenses	166			179
Equity, royalty and interest income from investees	94			105
Other operating (expense) income, net	—			(6		)
OPERATING INCOME	723			612

Interest income	6			6
Interest expense	17			15
Other (expense) income, net	(8		)	39
INCOME BEFORE INCOME TAXES	704			642

Income tax expense	208			170
CONSOLIDATED NET INCOME	496			472

Less: Net income attributable to noncontrolling interests	25			26
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	471		$	446

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	2.63		$	2.44
Diluted	$	2.62		$	2.43

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	179.2			182.8
Diluted	179.6			183.2

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 STATEMENTS OF INCOME
(Unaudited) (a)

	Six months ended
In millions, except per share amounts	June 28, 2015			June 29, 2014
NET SALES	$	9,724		$	9,241
Cost of sales	7,197			6,937
GROSS MARGIN	2,527			2,304

OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	1,054			998
Research, development and engineering expenses	361			369
Equity, royalty and interest income from investees	162			195
Other operating (expense) income, net	(3		)	(7		)
OPERATING INCOME	1,271			1,125

Interest income	11			11
Interest expense	31			32
Other income, net	1			49
INCOME BEFORE INCOME TAXES	1,252			1,153

Income tax expense	352			323
CONSOLIDATED NET INCOME	900			830

Less: Net income attributable to noncontrolling interests	42			46
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	858		$	784

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	4.77		$	4.27
Diluted	$	4.76		$	4.26

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	179.9			183.5
Diluted	180.3			183.9

CASH DIVIDENDS DECLARED PER COMMON SHARE	$	1.56		$	1.25

___________________________________________________________

^(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	June 28, 2015			December 31, 2014
ASSETS
Current assets
Cash and cash equivalents	$	1,760		$	2,301
Marketable securities	89			93
Total cash, cash equivalents and marketable securities	1,849			2,394
Accounts and notes receivable, net	3,422			2,946
Inventories	2,986			2,866
Prepaid expenses and other current assets	746			849
Total current assets	9,003			9,055
Long-term assets
Property, plant and equipment	7,151			7,123
Accumulated depreciation	(3,498		)	(3,437		)
Property, plant and equipment, net	3,653			3,686
Investments and advances related to equity method investees	995			981
Goodwill	473			479
Other intangible assets, net	339			343
Prepaid pensions	784			637
Other assets	631			595
Total assets	$	15,878		$	15,776

LIABILITIES
Current liabilities
Accounts payable (principally trade)	$	1,974		$	1,881
Loans payable	70			86
Current portion of accrued product warranty	405			363
Accrued compensation, benefits and retirement costs	432			508
Deferred revenue	402			401
Other accrued expenses	739			759
Current maturities of long-term debt	31			23
Total current liabilities	4,053			4,021
Long-term liabilities
Long-term debt	1,576			1,589
Postretirement benefits other than pensions	351			369
Pensions	291			289
Other liabilities and deferred revenue	1,393			1,415
Total liabilities	$	7,664		$	7,683

EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued	$	2,164		$	2,139
Retained earnings	10,123			9,545
Treasury stock, at cost, 43.7 and 40.1 shares	(3,350		)	(2,844		)
Common stock held by employee benefits trust, at cost, 1.0 and 1.1 shares	(12		)	(13		)
Accumulated other comprehensive loss	(1,071		)	(1,078		)
Total Cummins Inc. shareholders’ equity	7,854			7,749
Noncontrolling interests	360			344
Total equity	$	8,214		$	8,093
Total liabilities and equity	$	15,878		$	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)

	Six months ended
In millions	June 28, 2015			June 29, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$	900		$	830
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	254			217
Deferred income taxes	(63		)	(88		)
Equity in income of investees, net of dividends	(68		)	(108		)
Pension contributions in excess of expense	(122		)	(127		)
Other post-retirement benefits payments in excess of expense	(15		)	(14		)
Stock-based compensation expense	17			21
Translation and hedging activities	27			(9		)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(426		)	(321		)
Inventories	(127		)	(223		)
Other current assets	18			4
Accounts payable	97			289
Accrued expenses	(21		)	120
Changes in other liabilities and deferred revenue	133			116
Other, net	(35		)	(6		)
Net cash provided by operating activities	569			701

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(247		)	(245		)
Investments in internal use software	(22		)	(26		)
Investments in and advances to equity investees	(17		)	(11		)
Acquisitions of businesses, net of cash acquired	(15		)	(193		)
Investments in marketable securities—acquisitions	(173		)	(179		)
Investments in marketable securities—liquidations	155			179
Cash flows from derivatives not designated as hedges	5			4
Other, net	14			8
Net cash used in investing activities	(300		)	(463		)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	12			17
Payments on borrowings and capital lease obligations	(31		)	(39		)
Net payments under short-term credit agreements	(10		)	(48		)
Distributions to noncontrolling interests	(14		)	(32		)
Dividend payments on common stock	(280		)	(229		)
Repurchases of common stock	(514		)	(430		)
Other, net	8			5
Net cash used in financing activities	(829		)	(756		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	19			38
Net decrease in cash and cash equivalents	(541		)	(480		)
Cash and cash equivalents at beginning of year	2,301			2,699
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,760		$	2,219

___________________________________________________________

^(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 June 28, 2015
External sales	$	2,058		$	1,487			$	1,017		$	453		$	—		$	5,015
Intersegment sales	739			8				380			294			(1,421		)	—
Total sales	2,797			1,495				1,397			747			(1,421		)	5,015
Depreciation and amortization⁽²⁾	60			25				28			13			—			126
Research, development and engineering expenses	91			3				57			15			—			166
Equity, royalty and interest income from investees	57			21				8			8			—			94
Interest income	3			1				1			1			—			6
Segment EBIT	341			113				223			57			(13		)	721

Segment EBIT as a percentage of total sales	12.2		%	7.6		%		16.0		%	7.6		%				14.4		%

Three months ended June 29, 2014
External sales	$	2,178		$	1,229			$	953		$	475		$	—		$	4,835
Intersegment sales	566			9				327			268			(1,170		)	—
Total sales	2,744			1,238				1,280			743			(1,170		)	4,835
Depreciation and amortization⁽²⁾	52			20				26			13			—			111
Research, development and engineering expenses	105			3				53			18			—			179
Equity, royalty and interest income from investees	45			42				9			9			—			105
Interest income	4			—				1			1			—			6
Segment EBIT	311			126			⁽³⁾	185			61			(26		)	657

Segment EBIT as a percentage of total sales	11.3		%	10.2		%		14.5		%	8.2		%				13.6		%

⁽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 June 28, 2015 and June 29, 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."
⁽³⁾		Distribution segment EBIT included gains of $14 million on the fair value adjustments resulting from the acquisitions of the controlling interests in North American distributors for the three months ended June 29, 2014.

In millions	Engine			Distribution				Components			Power Generation			Non- segment Items ⁽¹⁾			Total
Six months ended June 28, 2015
External sales	$	3,947		$	2,956			$	1,948		$	873		$	—		$	9,724
Intersegment sales	1,446			15				748			554			(2,763		)	—
Total sales	5,393			2,971				2,696			1,427			(2,763		)	9,724
Depreciation and amortization⁽²⁾	118			52				54			29			—			253
Research, development and engineering expenses	205			6				118			32			—			361
Equity, royalty and interest income from investees	87			41				17			17			—			162
Interest income	5			2				2			2			—			11
Segment EBIT	594			201				418			106			(36		)	1,283

Segment EBIT as a percentage of total sales	11.0		%	6.8		%		15.5		%	7.4		%				13.2		%

Six months ended June 29, 2014
External sales	$	4,268		$	2,171			$	1,875		$	927		$	—		$	9,241
Intersegment sales	1,039			17				635			455			(2,146		)	—
Total sales	5,307			2,188				2,510			1,382			(2,146		)	9,241
Depreciation and amortization⁽²⁾	103			36				52			25			—			216
Research, development and engineering expenses	221			5				106			37			—			369
Equity, royalty and interest income from investees	77			83				18			17			—			195
Interest income	6			1				2			2			—			11
Segment EBIT	580			202			⁽³⁾	352			86			(35		)	1,185

Segment EBIT as a percentage of total sales	10.9		%	9.2		%		14.0		%	6.2		%				12.8		%

⁽¹⁾		Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 28, 2015 and June 29, 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 $1 million for the six months ended June 28, 2015 and June 29, 2014, respectively.
⁽³⁾		Distribution segment EBIT included gains of $20 million on the fair value adjustments resulting from the acquisitions of the controlling interests in North American distributors for the six months ended June 29, 2014.

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:


	Three months ended				Six months ended
In millions	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
Total EBIT	$	721	$	657	$	1,283	$	1,185
Less: Interest expense	17		15		31		32
Income before income taxes	$	704	$	642	$	1,252	$	1,153

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					Six months ended
In millions	June 28, 2015		June 29, 2014			June 28, 2015		June 29, 2014
Distribution Entities
North American distributors	$	8	$	30		$	18	$	62
Komatsu Cummins Chile, Ltda.	8		8			15		14
All other distributors	—		1			1		2
Manufacturing Entities
Dongfeng Cummins Engine Company, Ltd.	15		22			29		36
Beijing Foton Cummins Engine Co., Ltd. (Light-duty)	15		8			23		14
Chongqing Cummins Engine Company, Ltd.	11		15			23		26
Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)	7		(7		)	6		(13		)
All other manufacturers	21		19			28		34
Cummins share of net income	85		96			143		175
Royalty and interest income	9		9			19		20
Equity, royalty and interest income from investees	$	94	$	105		$	162	$	195

NOTE 2. INCOME TAXES

The effective tax rate for the three and six month periods ended June 28, 2015, was 29.5 percent and 28.1 percent, respectively. The six month 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:

	Six months ended
	June 28, 2015				June 29, 2014
In millions	Net Income		Diluted EPS		Net Income		Diluted EPS
Net income attributable to Cummins Inc.	$	858	$	4.76	$	784	$	4.26
Less
Tax items	18		0.10		—		—
Net income attributable to Cummins Inc. excluding special items	$	840	$	4.66	$	784	$	4.26

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						Six months ended
In millions	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
Earnings before interest expense and income taxes	$	721		$	657		$	1,283		$	1,185

EBIT as a percentage of net sales	14.4		%	13.6		%	13.2		%	12.8		%

Less
Interest expense	17			15			31			32
Income tax expense	208			170			352			323
Consolidated net income	496			472			900			830

Less
Net income attributable to noncontrolling interests	25			26			42			46
Net income attributable to Cummins Inc.	$	471		$	446		$	858		$	784

Net income attributable to Cummins Inc. as a percentage of net sales	9.4		%	9.2		%	8.8		%	8.5		%

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	$	875	$	—	$	—	$	1,632
Medium-duty truck and bus	608		674		—		—		1,282
Light-duty automotive	381		354		—		—		735
Industrial	616		624		—		—		1,240
Stationary power	234		270		—		—		504
Total sales	$	2,596	$	2,797	$	—	$	—	$	5,393

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
Mid-range	112,400	120,000	—	—	232,400
Heavy-duty	28,700	32,800	—	—	61,500
High-horsepower	3,500	3,700	—	—	7,200
Total units	144,600	156,500	—	—	301,100

2014
Units	Q1	Q2	Q3	Q4	YTD
Mid-range	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	$	598	$	—	$	—	$	1,171
Engines	321		318		—		—		639
Power generation	298		272		—		—		570
Service	284		307		—		—		591
Total sales	$	1,476	$	1,495	$	—	$	—	$	2,971

2014
In millions	Q1		Q2		Q3		Q4		YTD
Parts and filtration	$	382	$	461	$	491	$	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	$	679	$	—	$	—	$	1,292
Turbo Technologies	301		307		—		—		608
Filtration	255		266		—		—		521
Fuel systems	130		145		—		—		275
Total sales	$	1,299	$	1,397	$	—	$	—	$	2,696

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	$	611	$	—	$	—	$	1,154
Alternators	98		92		—		—		190
Power solutions	39		44		—		—		83
Total sales	$	680	$	747	$	—	$	—	$	1,427

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

View source version on businesswire.com: http://www.businesswire.com/news/home/20150728005207/en/

Cummins Inc.
Carole Casto, Executive Director - Corporate Communications, 317-610-2480
carole.casto@cummins.com

Source: Cummins Inc.

Released July 28, 2015

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