Cummins Announces Strong First Quarter Results with Revenue Growth of 16 Percent and EBIT Increasing 24 Percent
- Company on track for record full-year revenues and EBIT
COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported strong sales and profits for the first quarter of 2012.
First quarter revenue of $4.5 billion increased 16 percent from the same quarter in 2011. The increase year-over-year was driven by higher demand in truck, power generation and construction markets in North America and strong growth in global mining markets. Growth in these markets offset weaker demand in the truck market in Brazil, the construction market in China and construction and power generation markets in Europe.
Earnings before interest and taxes (EBIT) was $658 million or 14.7 percent of sales compared to $532 million or 13.8 percent of sales in the first quarter of 2011. EBIT increased by 24 percent, continuing the company’s trend of growing earnings faster than sales.
Net income attributable to Cummins in the first quarter of 2012 was $455 million ($2.38 per diluted share) compared to $343 million in the same period a year ago ($1.75 per diluted share).
“Cummins continues to benefit from its geographic diversification and its leadership position in a number of end markets as evidenced by our very strong first quarter results,” said Tom Linebarger, Chairman and Chief Executive Officer. “Revenues in North America grew 40 percent in the first quarter, offsetting near-term softness in some emerging markets. I am delighted that through close coordination with our key OEM partners and strong execution from our manufacturing and supply chain teams, we have been able to quickly increase our production in North America to meet strong demand for our products.”
Based on the current forecast, Cummins reaffirms that total Company revenues are expected to increase 10 percent in 2012, with EBIT in the range of 14.5 to 15 percent of sales.
Other recent highlights:
- Cummins announced at the Mid-America Truck Show in March that it has commenced development of a new 15-liter spark-ignited natural gas engine for the U.S. heavy-duty truck market.
- Also at the Mid-America Truck Show, Cummins unveiled its product solutions that will allow the Company’s engines for U.S. truck customers to meet 2014 fuel efficiency and green house gas standards in 2013.
- Cummins announced plans to develop a new master site for its operations in Brazil.
- For the fifth consecutive year, Cummins has been named one of the world's most ethical companies by The Ethisphere Institute.
First quarter detail (all comparisons to same period in 2011)
Engine Segment
- Sales – $2.9 billion, up 20 percent
- Segment EBIT – $381 million, or 13.3 percent of sales, compared to $290 million or 12.1 percent of sales
- Improved demand in North American heavy duty truck, medium duty truck and light duty truck and construction markets offsetting lower sales to the China construction and Brazilian truck markets
- Strong demand for mining engines globally
Components
- Sales - $1.1 billion, an increase of 19 percent
- Segment EBIT - $143 million, or 13.0 percent of sales, compared to $105 million or 11.4 percent of sales
- Record quarter driven by increased demand in North America and Brazil more than offsetting lower demand in Europe and China
Power Generation
- Sales – $780 million, down 2 percent
- Segment EBIT – $76 million, or 9.7 percent of sales, compared to $89 million or 11.2 percent of sales
- Improved demand in North America and Brazil offsetting lower revenues in the Middle East and Europe
Distribution
- Sales – $775 million, up 21 percent
- Segment EBIT – $94 million, or 12.1 percent of sales, compared to $89 million or 13.9 percent of sales
- Revenue increase driven by strong growth in Asia Pacific region, North and Central America, Europe and Africa
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 employs approximately 44,000 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 6,500 dealer locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. 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 our forecasts, expectations, hopes, beliefs and intentions on strategies regarding the future. 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 2011 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. 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.
| CUMMINS INC. AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (Unaudited) (a) | ||||||||||
| Three months ended | ||||||||||
| April 1, | December 31, | March 27, | ||||||||
| In millions, except per share amounts | 2012 | 2011 | 2011 | |||||||
| NET SALES | $ | 4,472 | $ | 4,921 | $ | 3,860 | ||||
| Cost of sales | 3,274 | 3,680 | 2,903 | |||||||
| GROSS MARGIN | 1,198 | 1,241 | 957 | |||||||
| OPERATING EXPENSES AND INCOME | ||||||||||
| Selling, general and administrative expenses | 475 | 496 | 389 | |||||||
| Research, development and engineering expenses | 181 | 179 | 129 | |||||||
| Equity, royalty and interest income from investees (Note 1) | 104 | 101 | 96 | |||||||
| Gain on sale of business | - | 53 | - | |||||||
| Other operating income (expense), net | 2 | 25 | (6) | |||||||
| OPERATING INCOME | 648 | 745 | 529 | |||||||
| Interest income | 8 | 9 | 6 | |||||||
| Interest expense | 8 | 10 | 10 | |||||||
| Other income (expense), net | 2 | 14 | (3) | |||||||
| INCOME BEFORE INCOME TAXES | 650 | 758 | 522 | |||||||
| Income tax expense (Note 2) | 175 | 186 | 157 | |||||||
| CONSOLIDATED NET INCOME | 475 | 572 | 365 | |||||||
| Less: Net income attributable to noncontrolling interests | 20 | 24 | 22 | |||||||
| NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ | 455 | $ | 548 | $ | 343 | ||||
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. |
||||||||||
| Basic | $ | 2.39 | $ | 2.87 | $ | 1.75 | ||||
| Diluted | $ | 2.38 | $ | 2.86 | $ | 1.75 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||
| Basic | 190.4 | 190.9 | 195.5 | |||||||
| Diluted | 190.8 | 191.5 | 196.1 | |||||||
| CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.40 | $ | 0.40 | $ | 0.2625 | ||||
(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) | |||||||||||
| In millions, except par value | April 1, 2012 | December 31, 2011 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 1,317 | $ | 1,484 | |||||||
| Marketable securities | 252 | 277 | |||||||||
| Total cash, cash equivalents and marketable securities | 1,569 | 1,761 | |||||||||
| Accounts and notes receivable, net | 2,684 | 2,526 | |||||||||
| Inventories | 2,382 | 2,141 | |||||||||
| Prepaid expenses and other current assets | 682 | 663 | |||||||||
| Total current assets | 7,317 | 7,091 | |||||||||
| Long-term assets | |||||||||||
| Property, plant and equipment | 5,416 | 5,245 | |||||||||
| Accumulated depreciation | (3,025) | (2,957) | |||||||||
| Property, plant and equipment, net | 2,391 | 2,288 | |||||||||
| Investments and advances related to equity method investees | 903 | 838 | |||||||||
| Goodwill | 342 | 339 | |||||||||
| Other intangible assets, net | 250 | 227 | |||||||||
| Other assets | 916 | 885 | |||||||||
| Total assets | $ | 12,119 | $ | 11,668 | |||||||
| LIABILITIES | |||||||||||
| Current liabilities | |||||||||||
| Loans payable | $ | 33 | $ | 28 | |||||||
| Accounts payable (principally trade) | 1,731 | 1,546 | |||||||||
| Current portion of accrued product warranty | 418 | 422 | |||||||||
| Accrued compensation, benefits and retirement costs | 289 | 511 | |||||||||
| Deferred revenue | 211 | 208 | |||||||||
| Taxes payable (including taxes on income) | 297 | 282 | |||||||||
| Other accrued expenses | 651 | 660 | |||||||||
| Total current liabilities | 3,630 | 3,657 | |||||||||
| Long-term liabilities | |||||||||||
| Long-term debt | 650 | 658 | |||||||||
| Pensions | 157 | 205 | |||||||||
| Postretirement benefits other than pensions | 428 | 432 | |||||||||
| Other liabilities and deferred revenue | 896 | 885 | |||||||||
| Total liabilities | 5,761 | 5,837 | |||||||||
| EQUITY | |||||||||||
| Cummins Inc. shareholders’ equity | |||||||||||
| Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.2 shares issued | 2,017 | 2,001 | |||||||||
| Retained earnings | 6,416 | 6,038 | |||||||||
| Treasury stock, at cost, 30.2 and 30.2 shares | (1,590) | (1,587) | |||||||||
| Common stock held by employee benefits trust, at cost, 1.7 and 1.8 shares | (20) | (22) | |||||||||
| Accumulated other comprehensive loss | |||||||||||
| Defined benefit postretirement plans | (713) | (724) | |||||||||
| Other | (100) | (214) | |||||||||
| Total accumulated other comprehensive loss | (813) | (938) | |||||||||
| Total Cummins Inc. shareholders’ equity | 6,010 | 5,492 | |||||||||
| Noncontrolling interests | 348 | 339 | |||||||||
| Total equity | 6,358 | 5,831 | |||||||||
| Total liabilities and equity | $ | 12,119 | $ | 11,668 | |||||||
(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) | ||||||||
| Three months ended | ||||||||
| In millions | April 1, 2012 | March 27, 2011 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Consolidated net income | $ | 475 | $ | 365 | ||||
| Adjustments to reconcile consolidated net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 85 | 79 | ||||||
| Deferred income taxes | (27) | 21 | ||||||
| Equity in income of investees, net of dividends | (59) | (62) | ||||||
| Pension contributions in excess of expense | (27) | (24) | ||||||
| Other post-retirement benefits payments in excess of expense | (4) | (5) | ||||||
| Stock-based compensation expense | 7 | 5 | ||||||
| Excess tax benefits on stock-based awards | (11) | (2) | ||||||
| Translation and hedging activities | 10 | 4 | ||||||
| Changes in current assets and liabilities, net of acquisitions | ||||||||
| Accounts and notes receivable | (135) | (306) | ||||||
| Inventories | (209) | (210) | ||||||
| Other current assets | (28) | (2) | ||||||
| Accounts payable | 148 | 251 | ||||||
| Accrued expenses | (196) | (28) | ||||||
| Changes in other liabilities and deferred revenue | 29 | 24 | ||||||
| Other, net | (37) | (22) | ||||||
| Net cash provided by operating activities | 21 | 88 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (126) | (91) | ||||||
| Investments in internal use software | (16) | (10) | ||||||
| Investments in and advances to equity investees | (5) | (21) | ||||||
| Acquisition of businesses, net of cash acquired | (5) | - | ||||||
| Investments in marketable securities—acquisitions | (146) | (101) | ||||||
| Investments in marketable securities—liquidations | 184 | 134 | ||||||
| Cash flows from derivatives not designated as hedges | 11 | 4 | ||||||
| Other, net | 1 | 7 | ||||||
| Net cash used in investing activities | (102) | (78) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from borrowings | 12 | 38 | ||||||
| Payments on borrowings and capital lease obligations | (38) | (45) | ||||||
| Net borrowings (payments) under short-term credit agreements | - | 1 | ||||||
| Distributions to noncontrolling interests | (22) | (21) | ||||||
| Dividend payments on common stock | (77) | (51) | ||||||
| Repurchases of common stock | (8) | (190) | ||||||
| Excess tax benefits on stock-based awards | 11 | 2 | ||||||
| Other, net | 9 | 4 | ||||||
| Net cash used in financing activities | (113) | (262) | ||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 27 | 8 | ||||||
| Net increase (decrease) in cash and cash equivalents | (167) | (244) | ||||||
| Cash and cash equivalents at beginning of year | 1,484 | 1,023 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1,317 | $ | 779 | ||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).
|
CUMMINS INC. AND SUBSIDIARIES |
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|
|
In millions | Engine | Components |
Power |
Distribution |
Non-segment |
Total | |||||||||||||
| Three months ended April 1, 2012 | ||||||||||||||||||||
| External sales | $ | 2,412 | $ | 774 | $ | 516 | $ | 770 | $ | - | $ | 4,472 | ||||||||
| Intersegment sales | 447 | 325 | 264 | 5 | (1,041) | - | ||||||||||||||
| Total sales | 2,859 | 1,099 | 780 | 775 | (1,041) | 4,472 | ||||||||||||||
| Depreciation and amortization(2) | 47 | 19 | 11 | 7 | - | 84 | ||||||||||||||
| Research, development and engineering expenses | 111 | 51 | 18 | 1 | - | 181 | ||||||||||||||
| Equity, royalty and interest income from investees | 38 | 8 | 10 | 48 | - | 104 | ||||||||||||||
| Interest income | 4 | 1 | 2 | 1 | - | 8 | ||||||||||||||
| Segment EBIT | 381 | 143 | 76 | 94 | (36) | 658 | ||||||||||||||
| Three months ended December 31, 2011 | ||||||||||||||||||||
| External sales | $ | 2,628 | $ | 781 | $ | 682 | $ | 830 | $ | - | $ | 4,921 | ||||||||
| Intersegment sales | 433 | 311 | 238 | 4 | (986) | - | ||||||||||||||
| Total sales | 3,061 | 1,092 | 920 | 834 | (986) | 4,921 | ||||||||||||||
| Depreciation and amortization(2) | 46 | 18 | 10 | 8 | - | 82 | ||||||||||||||
| Research, development and engineering expenses | 112 | 49 | 17 | 1 | - | 179 | ||||||||||||||
| Equity, royalty and interest income from investees | 40 | 7 | 10 | 44 | - | 101 | ||||||||||||||
| Interest income | 4 | 2 | 2 | 1 | - | 9 | ||||||||||||||
| Segment EBIT | 368 | 132 | 87 | 87 | 94 | 768 | ||||||||||||||
| Three months ended March 27, 2011 | ||||||||||||||||||||
| External sales | $ | 2,006 | $ | 660 | $ | 557 | $ | 637 | $ | - | $ | 3,860 | ||||||||
| Intersegment sales | 385 | 264 | 238 | 5 | (892) | - | ||||||||||||||
| Total sales | 2,391 | 924 | 795 | 642 | (892) | 3,860 | ||||||||||||||
| Depreciation and amortization(2) | 45 | 18 | 10 | 6 | - | 79 | ||||||||||||||
| Research, development and engineering expenses | 80 | 37 | 11 | 1 | - | 129 | ||||||||||||||
| Equity, royalty and interest income from investees | 42 | 8 | 8 | 38 | - | 96 | ||||||||||||||
| Interest income | 3 | 1 | 1 | 1 | - | 6 | ||||||||||||||
| Segment EBIT | 290 | 105 | 89 | 89 | (41) | 532 | ||||||||||||||
| (1) | Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three month periods ended April 1, 2012 and March 27, 2011. For the three months ended December 31, 2011, unallocated corporate expenses include a $53 million gain ($33 million after-tax) recorded for the sale of certain assets and liabilities of our light-duty filtration business from our Components segment and a $38 million gain ($24 million after-tax) related to flood damage recoveries from the insurance settlement regarding a June 2008 flood in Southern Indiana. | |
| (2) |
Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as “Interest expense.” |
|
A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:
| Three months ended | ||||||||||
| April 1, | December 31, | March 27, | ||||||||
| In millions | 2012 | 2011 | 2011 | |||||||
| Segment EBIT | $ | 658 | $ | 768 | $ | 532 | ||||
| Less | ||||||||||
| Interest expense | 8 | 10 | 10 | |||||||
| Income before income taxes | $ | 650 | $ | 758 | $ | 522 | ||||
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 | ||||||||||
| April 1, | December 31, | March 27, | ||||||||
| In millions | 2012 | 2011 | 2011 | |||||||
| Distribution Entities | ||||||||||
| North American distributors | $ | 40 | $ | 34 | $ | 30 | ||||
| Komatsu Cummins Chile, Ltda. | 5 | 6 | 4 | |||||||
| All other distributors | 1 | 1 | 1 | |||||||
| Manufacturing Entities | ||||||||||
| Chongqing Cummins Engine Company, Ltd. | 18 | 17 | 12 | |||||||
| Dongfeng Cummins Engine Company, Ltd. | 16 | 16 | 23 | |||||||
| Cummins Westport, Inc. | 5 | 6 | 1 | |||||||
| Tata Cummins, Ltd. | 4 | 5 | 4 | |||||||
| Shanghai Fleetguard Filter Co., Ltd. | 3 | 3 | 4 | |||||||
| Valvoline Cummins, Ltd. | 2 | 1 | 2 | |||||||
| Komatsu manufacturing alliances | (1) | 2 | 2 | |||||||
| Beijing Foton Cummins Engine Co., Ltd. | (2) | (2) | (2) | |||||||
| All other manufacturers | 1 | 2 | 6 | |||||||
| Cummins share of net income | 92 | 91 | 87 | |||||||
| Royalty and interest income | 12 | 10 | 9 | |||||||
| Equity, royalty and interest income from investees | $ | 104 | $ | 101 | $ | 96 | ||||
NOTE 2. INCOME TAXES
Our effective tax rate for the year is expected to approximate 27 percent, absent any discrete period activity. Our tax rate is generally less than the 35 percent U.S. statutory income tax rate primarily due to lower tax rates on foreign income. The tax rate for the three month period ended April 1, 2012, was 27 percent.
Our effective tax rate for the three months ended March 27, 2011, was 30 percent. The decrease in the 2012 effective tax rate compared to 2011 is due primarily to our assertion that income earned after 2011 by our China operations is permanently reinvested, as well as certain tax planning strategies implemented in our U.K. subsidiaries.
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 period presented as it illustrates our operating performance without regard to special items including the gains related to the sale of certain assets and liabilities and flood insurance recovery. 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. to net income attributable to Cummins Inc. excluding special items for the quarters ended April 1, 2012, December 31, 2011 and March 27, 2011.
| Three months ended | |||||||||||||||||||||
| April 1, 2012 | December 31, 2011 | March 27, 2011 | |||||||||||||||||||
| In millions | Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | |||||||||||||||
| Net income attributable to Cummins Inc. | $ | 455 | $ | 2.38 | $ | 548 | $ | 2.86 | $ | 343 | $ | 1.75 | |||||||||
| Subtract | |||||||||||||||||||||
| Gain on sale of business (1) | - | - | 33 | 0.17 | - | - | |||||||||||||||
| Flood insurance recovery (1) | - | - | 24 | 0.13 | - | - | |||||||||||||||
|
Net income attributable to Cummins Inc. excluding special items |
$ | 455 | $ | 2.38 | $ | 491 | $ | 2.56 | $ | 343 | $ | 1.75 | |||||||||
(1)The gains have been excluded from operating results as they were not considered in our evaluation of performance for the quarter ended December 31, 2011.
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT
SUPPLEMENT GAAP
(Unaudited)
Earnings before interest expense, 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 | ||||||||||||
| April 1, | December 31, | March 27, | ||||||||||
| In millions | 2012 | 2011 | 2011 | |||||||||
|
Earnings before interest expense, income taxes and special items |
$ | 658 | $ | 677 | $ | 532 | ||||||
|
Earnings before interest expense, income taxes and special items as a percentage of net sales |
14.7% | 13.8% | 13.8% | |||||||||
| Add | ||||||||||||
| Gain on sale of business | - | 53 | - | |||||||||
| Flood insurance recovery | - | 38 | - | |||||||||
| Earnings before interest expense and income taxes | $ | 658 | $ | 768 | $ | 532 | ||||||
| EBIT as a percentage of net sales | 14.7% | 15.6% | 13.8% | |||||||||
| Less | ||||||||||||
| Interest expense | 8 | 10 | 10 | |||||||||
| Income tax expense | 175 | 186 | 157 | |||||||||
| Consolidated net income | 475 | 572 | 365 | |||||||||
| Less | ||||||||||||
| Net income attributable to noncontrolling interests | 20 | 24 | 22 | |||||||||
| Net income attributable to Cummins Inc. | $ | 455 | $ | 548 | $ | 343 | ||||||
|
Net income attributable to Cummins Inc. as a percentage of net sales |
10.2% | 11.1% | 8.9% | |||||||||
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
Engine segment net sales by market
| 2012 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Heavy-duty truck | $ | 892 | $ | - | $ | - | $ | - | $ | 892 | ||||||
| Medium-duty truck and bus | 526 | - | - | - | 526 | |||||||||||
| Light-duty automotive and RV | 286 | - | - | - | 286 | |||||||||||
| Industrial | 861 | - | - | - | 861 | |||||||||||
| Stationary power | 294 | - | - | - | 294 | |||||||||||
| Total sales | $ | 2,859 | $ | - | $ | - | $ | - | $ | 2,859 | ||||||
| 2011 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Heavy-duty truck | $ | 485 | $ | 693 | $ | 748 | $ | 865 | $ | 2,791 | ||||||
| Medium-duty truck and bus | 474 | 608 | 640 | 598 | 2,320 | |||||||||||
| Light-duty automotive and RV | 296 | 310 | 271 | 299 | 1,176 | |||||||||||
| Industrial | 855 | 988 | 977 | 1,030 | 3,850 | |||||||||||
| Stationary power | 281 | 301 | 319 | 269 | 1,170 | |||||||||||
| Total sales | $ | 2,391 | $ | 2,900 | $ | 2,955 | $ | 3,061 | $ | 11,307 | ||||||
Unit shipments by engine classification (including unit shipments to Power Generation)
| 2012 | |||||||||||
| Units | Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Midrange | 109,000 | - | - | - | 109,000 | ||||||
| Heavy-duty | 36,000 | - | - | - | 36,000 | ||||||
| High-horsepower | 5,500 | - | - | - | 5,500 | ||||||
| Total units | 150,500 | - | - | - | 150,500 | ||||||
| 2011 | |||||||||||
| Units | Q1 | Q2 | Q3 | Q4 | YTD | ||||||
| Midrange | 109,400 | 131,300 | 130,600 | 138,100 | 509,400 | ||||||
| Heavy-duty | 20,000 | 29,900 | 31,100 | 35,300 | 116,300 | ||||||
| High-horsepower | 4,900 | 5,700 | 5,600 | 5,400 | 21,600 | ||||||
| Total units | 134,300 | 166,900 | 167,300 | 178,800 | 647,300 | ||||||
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
Component segment sales by business
| 2012 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Emission solutions | $ | 404 | $ | - | $ | - | $ | - | $ | 404 | ||||||
| Turbo technologies | 298 | - | - | - | 298 | |||||||||||
| Filtration | 270 | - | - | - | 270 | |||||||||||
| Fuel systems | 127 | - | - | - | 127 | |||||||||||
| Total sales | $ | 1,099 | $ | - | $ | - | $ | - | $ | 1,099 | ||||||
| 2011 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Emission solutions | $ | 273 | $ | 311 | $ | 306 | $ | 372 | $ | 1,262 | ||||||
| Turbo technologies | 297 | 314 | 298 | 314 | 1,223 | |||||||||||
| Filtration | 255 | 287 | 288 | 283 | 1,113 | |||||||||||
| Fuel systems | 99 | 120 | 123 | 123 | 465 | |||||||||||
| Total sales | $ | 924 | $ | 1,032 | $ | 1,015 | $ | 1,092 | $ | 4,063 | ||||||
In the first quarter of 2012, our Power Generation segment reorganized its reporting structure to include the following businesses: power products, power systems, generator technologies and power solutions. Sales for our Power Generation segment by business (including 2011 and 2010 reorganized balances) were as follows:
| 2012 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Power products | $ | 375 | $ | - | $ | - | $ | - | $ | 375 | ||||||
| Power systems | 188 | - | - | - | 188 | |||||||||||
| Generator technologies | 141 | - | - | - | 141 | |||||||||||
| Power solutions | 76 | - | - | - | 76 | |||||||||||
| Total sales | $ | 780 | $ | - | $ | - | $ | - | $ | 780 | ||||||
| 2011 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Power products | $ | 377 | $ | 415 | $ | 433 | $ | 411 | $ | 1,636 | ||||||
| Power systems | 189 | 210 | 188 | 228 | 815 | |||||||||||
| Generator technologies | 154 | 189 | 166 | 164 | 673 | |||||||||||
| Power solutions | 75 | 95 | 87 | 117 | 374 | |||||||||||
| Total sales | $ | 795 | $ | 909 | $ | 874 | $ | 920 | $ | 3,498 | ||||||
| 2010 | ||||||||||||||||
| In millions | YTD | |||||||||||||||
| Power products | $ | 1,465 | ||||||||||||||
| Power systems | 616 | |||||||||||||||
| Generator technologies | 550 | |||||||||||||||
| Power solutions | 288 | |||||||||||||||
| Total sales | $ | 2,919 | ||||||||||||||
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
Distribution segment sales by product
| 2012 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Parts and filtration | $ | 288 | $ | - | $ | - | $ | - | $ | 288 | ||||||
| Power generation | 186 | - | - | - | 186 | |||||||||||
| Engines | 166 | - | - | - | 166 | |||||||||||
| Service | 135 | - | - | - | 135 | |||||||||||
| Total sales | $ | 775 | $ | - | $ | - | $ | - | $ | 775 | ||||||
| 2011 | ||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||
| Parts and filtration | $ | 235 | $ | 271 | $ | 283 | $ | 296 | $ | 1,085 | ||||||
| Power generation | 145 | 195 | 191 | 191 | 722 | |||||||||||
| Engines | 140 | 186 | 171 | 206 | 703 | |||||||||||
| Service | 122 | 133 | 138 | 141 | 534 | |||||||||||
| Total sales | $ | 642 | $ | 785 | $ | 783 | $ | 834 | $ | 3,044 | ||||||
Cummins Inc.
Carole Casto, Executive Director - Corporate
Communications, 317-610-2480
carole.casto@cummins.com
Source: Cummins Inc.
Released May 1, 2012