Cummins Reports Fifth Consecutive Year of Record Sales and Earnings, Despite Weaker Demand in the Fourth Quarter
Company Expects to Earn Solid Profit in 2009 Despite Forecasted 20 Percent Drop in Sales
COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported its fifth consecutive year of record sales and profits, despite significant global economic challenges that negatively affected fourth quarter performance.
For the year, sales increased 10 percent to $14.34 billion, from $13.05 billion in 2007. Net income rose 8 percent to $801 million, or $4.08 per share, compared to $739 million or $3.70 per share the previous year. Earnings Before Interest and Taxes (EBIT) were $1.29 billion, or 9.0 percent of sales, compared to $1.23 billion, or 9.4 percent of sales.
Net income included a $37 million pre-tax charge ($0.13 a share) to cover the costs associated with job reductions in the fourth quarter that included reducing its professional workforce by nearly 650 people. Excluding this charge, EBIT was $1.33 billion, or 9.3 percent of sales.
As the Company publicly stated in mid-December when it revised its sales and EBIT guidance downward for 2008, market conditions around the world began to deteriorate rapidly and sharply in the fourth quarter as the global recession continued to spread.
Fourth quarter sales fell 6 percent to $3.29 billion compared to $3.52 billion during the same period in 2007. Net income dropped to $89 million or $0.45 a share, from $198 million, or $1.00 a share a year ago, while EBIT decreased to $129 million, or 3.9 percent of sales, from $324 million, or 9.2 percent of sales. Excluding the restructuring charge, EBIT was $166 million, or 5.0 percent of sales.
Sales declines in the Company's Engine and Components segments, driven by sharp demand drops in the global truck and construction markets, more than offset gains in Power Generation and Distribution. All four segments, however, experienced weakening demand during the course of the quarter. The Company's financial performance in the quarter also was negatively affected by lower joint venture income and the impact of a strengthening U.S. dollar.
"Given our record-setting performance during the first nine months of the year, the rapid drop in demand in the fourth quarter as a result of the global recession was a major disappointment," said Cummins Chairman and Chief Executive Officer Tim Solso. "At the same time, we moved quickly to lower our costs and tightly manage our capital spending, and already have taken further action in early 2009."
Based on its latest market forecast and the expectation the global economy will not improve in 2009, Cummins today is providing sales and EBIT guidance that is below the Company's 2008 performance. Cummins expects sales in 2009 to be approximately 20 percent lower than 2008, and to earn an EBIT margin of 6.5 percent of sales, excluding restructuring costs associated with the actions announced in the first quarter of 2009.
Sales are forecast to drop across all business segments, with the largest decline expected to come from the Components and Engine segments. All business segments, however, are expected to be profitable in 2009 and the Company will continue to aggressively reduce costs while investing in key growth opportunities.
In January, Cummins announced that it will reduce its worldwide professional workforce by at least an additional 800 people by March 1 and freeze pay for most salaried workers. In addition, the Company's officers had their pay reduced by 10 percent for 2009.
By the end of March, the Company will have reduced its global workforce by more than 1,400 salaried professionals and more than 1,300 hourly manufacturing plant employees - or about 6 percent of its total workforce - since the beginning of the fourth quarter 2008. During that time, Cummins has taken a number of other steps to align its costs with the current and expected future demand for its products, including:
-- Cutting 2,500 contract and temporary workers
-- Freezing hiring, except in rare cases
-- Reducing the number of corporate officers by 10 percent by March 31
-- Temporarily closing or shortening work weeks at a number of
manufacturing facilities
-- Cutting discretionary spending
-- Reducing IT spending
-- Reducing planned capital expenditures in 2009 significantly from
originally planned levels, while continuing to focus on critical needs
such as the necessary development work to meet new emissions standards
in the U.S. in 2010.
Despite the difficult economic climate, the Company's balance sheet remains strong with low debt, healthy cash reserves and access to a $1.1 billion credit revolver. Cash generation and investment in future products, such as those to meet new U.S. emissions standards in 2010, and to support customer requirements will be a priority in 2009. In light of the current economic conditions, the Company also has suspended its stock repurchase program but remains committed to maintaining its current dividend.
"We are in an extraordinarily challenging period, and while we don't expect overall economic conditions to improve in 2009, we entered this recession in the strongest financial position in the Company's history," Solso said. "Our experienced management team understands what it takes for Cummins to be successful in difficult times, and I am confident that we will do the hard work and make the difficult decisions necessary to emerge from this downturn well positioned to resume our recent history of profitable growth."
Fourth quarter details
Engine Segment
Sales of $1.94 billion were 10 percent lower than $2.16 billion in same period a year ago. Segment EBIT fell 79 percent to $25 million, or 1.3 percent of sales, compared to $120 million, or 5.6 percent of sales, in 2007.
Engine shipments declined in nearly all on-highway markets, including heavy-duty truck (9 percent); medium-duty truck (9 percent); Chrysler/light-duty auto (34 percent) recreational vehicle (72 percent) and construction (30 percent). The segment's performance also was negatively affected by higher material costs, currency effects, increased warranty expense and lower income from its joint ventures.
Power Generation Segment
Sales increased 6 percent to $887 million compared to $840 million a year ago, while Segment EBIT of $75 million, or 8.5 percent of sales, decreased 13 percent compared to $86 million, or 10.2 percent of sales, in the same period in 2007.
Commercial generator sales improved 14 percent to $562 million, driven by strength in Western Europe and China, and more than offset a large decline in the Company's consumer generator business as a result of continued weakness in the U.S. Higher material costs and unfavorable currency effects offset improved pricing, resulting in lower segment EBIT.
Components Segment
Sales decreased 13 percent to $676 million, from $777 million in the fourth quarter 2007, while Segment EBIT of $2 million, or 0.3 percent of sales, fell 96 percent from $47 million, or 6.0 percent of sales, the same period a year ago. In addition to lower sales, unfavorable currency effects, increased warranty expense and the gain associated with the sale of a business in the fourth quarter of 2007 contributed to lower year-over-year Segment EBIT.
Sales were flat in the Company's exhaust aftertreatment business, but fell significantly in the other three businesses in the segment: Fuel Systems sales fell 25 percent, Turbocharger sales fell 18 percent and Filtration sales decreased 11 percent as the segment felt the effects of the demand drop in truck and construction equipment markets around much of the world.
Distribution Segment
Sales increased 19 percent to $557 million, from $468 million in the fourth quarter of 2007. Excluding the impact of currency, sales grew in all nine of the business' geographic regions, led by sales of high horsepower engines to industrial markets and power generator equipment. Results from a recently consolidated distributor location in the United States also contributed significantly to the sales gain.
Segment EBIT of $64 million, or 11.5 percent of sales, was 14 percent higher than $56 million, or 12.0 percent of sales, during the same period in 2007. The strong Segment EBIT performance came despite unfavorable currency effects, primarily in Europe, as a result of the strong U.S. dollar.
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 $801 million on sales of $14.34 billion in 2008. Press releases can be found on the Web at www.cummins.com.
Presentation of Non-GAAP Financial Information
EBIT is a 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. 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.
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
December 31, September 28, December 31,
2008 2008 2007
in millions (except per share amounts)
NET SALES $ 3,288 $ 3,693 $ 3,516
Cost of sales 2,672 2,873 2,834
GROSS MARGIN 616 820 682
OPERATING EXPENSES AND INCOME
Selling, general and 350 388 359
administrative expenses
Research, development and 102 113 93
engineering expenses
Equity, royalty and interest 51 66 59
income from investees (Note 1)
Restructuring charges (Note 2) 37 -- --
Other operating (expense) income, (3 ) (2 ) 13
net
OPERATING INCOME 175 383 302
Interest income 4 4 9
Interest expense 9 10 14
Other (expense) income, net (Note (50 ) (7 ) 13
3)
INCOME BEFORE INCOME TAXES AND 120 370 310
MINORITY INTERESTS
Income tax expense (Note 4) 15 123 97
Minority interests in income of 16 18 15
consolidated subsidiaries
NET INCOME $ 89 $ 229 $ 198
EARNINGS PER COMMON SHARE
Basic $ 0.46 $ 1.18 $ 1.01
Diluted $ 0.45 $ 1.17 $ 1.00
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 194.7 194.9 195.7
Diluted 196.6 196.5 197.5
Cash dividends declared per share $ 0.175 $ 0.175 $ 0.125
(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)
For the years ended
December 31, December 31,
2008 2007
in millions (except per share amounts)
NET SALES $ 14,342 $ 13,048
Cost of sales 11,320 10,492
GROSS MARGIN 3,022 2,556
OPERATING EXPENSES AND INCOME
Selling, general and administrative 1,459 1,296
expenses
Research, development and engineering 422 329
expenses
Equity, royalty and interest income from 253 205
investees (Note 1)
Restructuring charges (Note 2) 37 --
Other operating (expense) income, net (12 ) 22
OPERATING INCOME 1,345 1,158
Interest income 18 36
Interest expense 42 58
Other (expense) income, net (Note 3) (70 ) 33
INCOME BEFORE INCOME TAXES AND MINORITY 1,251 1,169
INTERESTS
Income tax expense (Note 4) 387 381
Minority interests in income of 63 49
consolidated subsidiaries
NET INCOME $ 801 $ 739
EARNINGS PER COMMON SHARE
Basic $ 4.11 $ 3.72
Diluted $ 4.08 $ 3.70
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 195.0 198.4
Diluted 196.5 199.9
Cash dividends declared per share $ 0.60 $ 0.43
(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)
December 31, December 31,
2008 2007
in millions
(except par value)
ASSETS
Current assets
Cash and cash equivalents $ 426 $ 577
Marketable securities 77 120
Accounts and notes receivable, net 1,782 1,998
Inventories 1,783 1,692
Other current assets 639 428
Total current assets 4,707 4,815
Long-term assets
Property, plant and equipment, net 1,841 1,645
Investments and advances related to equity method 588 514
investees
Goodwill and other intangible assets, net 585 538
Other assets 770 683
Total assets $ 8,491 $ 8,195
LIABILITIES
Current liabilities
Short-term borrowings $ 69 $ 119
Accounts payable (principally trade) 1,009 1,263
Accrued expenses 1,486 1,329
Total current liabilities 2,564 2,711
Long-term liabilities
Long-term debt 629 555
Other liabilities 1,771 1,227
Total liabilities 4,964 4,493
MINORITY INTERESTS 250 293
SHAREHOLDERS' EQUITY
Common stock, $2.50 par value, 500 and 300 shares 554 551
authorized, 221.7 and 220.4 shares issued
Additional paid-in capital 1,240 1,168
Retained earnings 3,334 2,660
Treasury stock, at cost, 20.4 and 18.2 shares (715 ) (593 )
Common stock held by employee benefits trust, at (61 ) (79 )
cost, 5.1 and 6.5 shares
Unearned compensation (5 ) (11 )
Accumulated other comprehensive loss (1,070 ) (287 )
Total shareholders' equity 3,277 3,409
Total liabilities, minority interests and $ 8,491 $ 8,195
shareholders' equity
(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)
For the years ended
December 31, December 31,
2008 2007
in millions
NET CASH PROVIDED BY OPERATING ACTIVITIES (Note $ 987 $ 810
5)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (543 ) (353 )
Investments in internal use software (82 ) (67 )
Investments in and advances to equity investees (89 ) (66 )
Acquisition of businesses, net of cash acquired (142 ) (20 )
Proceeds from the sale of an equity investment 64 35
Investments in marketable (390 ) (405 )
securities--acquisitions
Investments in marketable 409 395
securities--liquidations
Purchases of other investments (62 ) (57 )
Other, net (13 ) 23
Net cash used in investing activities (848 ) (515 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 76 15
Payments on borrowings and capital lease (152 ) (144 )
obligations
Dividend payments on common stock (122 ) (89 )
Proceeds from sale of common stock held by 63 14
employee benefit trust
Repurchases of common stock (128 ) (335 )
Other, net 26 (37 )
Net cash used in financing activities (237 ) (576 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH (53 ) 18
EQUIVALENTS
Net decrease in cash and cash equivalents (151 ) (263 )
Cash and cash equivalents at beginning of year 577 840
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 426 $ 577
(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)
Engine Power Components Distribution Non-segment Total
Generation items(1)
in millions
Three months
ended
December 31,
2008
External $ 1,590 $ 675 $ 468 $ 555 $ -- $ 3,288
sales
Intersegment 346 212 208 2 (768 ) --
sales
Total sales 1,936 887 676 557 (768 ) 3,288
Depreciation
and 47 10 16 8 ― 81
amortization
(2)
Research,
development
and 71 10 21 ― ― 102
engineering
expense
Equity,
royalty and
interest 8 6 4 33 -- 51
income from
investees
Restructuring ― ― ― ― 37 37
charges
Interest 3 ― ― 1 -- 4
income
Segment EBIT 25 75 2 64 (37 ) 129
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
Three months
ended
December 31,
2007
External $ 1,862 $ 645 $ 542 $ 467 $ -- $ 3,516
sales
Intersegment 293 195 235 1 (724 ) --
sales
Total sales 2,155 840 777 468 (724 ) 3,516
Depreciation
and 44 11 16 3 ― 74
amortization
(2)
Research,
development
and 63 9 21 ― ― 93
engineering
expense
Equity,
royalty and
interest 26 5 3 25 -- 59
income from
investees
Interest 6 2 1 -- -- 9
income
Segment EBIT 120 86 47 56 15 324
For the year
ended
December 31,
2008
External $ 7,432 $ 2,601 $ 2,154 $ 2,155 $ -- $ 14,342
sales
Intersegment 1,378 899 998 9 (3,284 ) --
sales
Total sales 8,810 3,500 3,152 2,164 (3,284 ) 14,342
Depreciation
and 180 41 65 25 ― 311
amortization
(2)
Research,
development
and 286 41 95 ― ― 422
engineering
expense
Equity,
royalty and
interest 99 23 14 117 -- 253
income from
investees
Restructuring ― ― ― ― 37 37
charges
Interest 10 3 3 2 -- 18
income
Segment EBIT 600 376 177 242 (102 ) 1,293
For the year
ended
December 31,
2007
External $ 7,129 $ 2,375 $ 2,007 $ 1,537 $ -- $ 13,048
sales
Intersegment 1,053 685 925 3 (2,666 ) --
sales
Total sales 8,182 3,060 2,932 1,540 (2,666 ) 13,048
Depreciation
and 176 42 59 11 ― 288
amortization
(2)
Research,
development
and 222 34 73 ― ― 329
engineering
expense
Equity,
royalty and
interest 92 17 4 92 -- 205
income from
investees
Interest 26 6 3 1 -- 36
income
Segment EBIT 589 334 153 187 (36 ) 1,227
(1) Includes intercompany eliminations and unallocated corporate expenses. For the three months ended and the year ended December 31, 2008, Non-segment includes a $36 million decrease in cash surrender value in corporate owned life insurance (COLI).
(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.
CUMMINS INC. AND SUBSIDIARIES
RECONCILIATION OF SEGMENT INFORMATION
(Unaudited)
A reconciliation of our segment information to the corresponding amounts in the
Condensed Consolidated Financial Statements is shown in the table below:
Three months ended For the years ended
December 31, September 28, December 31, December 31, December 31,
2008 2008 2007 2008 2007
in millions
Segment $ 129 $ 380 $ 324 $ 1,293 $ 1,227
EBIT
Less:
Interest 9 10 14 42 58
expense
Income
before
income $ 120 $ 370 $ 310 $ 1,251 $ 1,169
taxes and
minority
interests
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Earnings before interest, taxes and minority interests (EBIT)
We define EBIT as earnings before interest expense, income tax expense and
minority interests in income of consolidated subsidiaries. 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 our consolidated net
income, for each of the applicable periods:
Three Months Ended For the years ended
December September December December 31, December 31,
31, 28, 31,
2008 2008 2007 2008 2007
in millions
Earnings
before
interest, $ 129 $ 380 $ 324 $ 1,293 $ 1,227
income taxes
and minority
interests
EBIT as a
percentage 3.9 % 10.3 % 9.2 % 9.0 % 9.4 %
of net sales
Less:
Interest 9 10 14 42 58
expense
Income tax 15 123 97 387 381
expense
Minority
interests in
income of 16 18 15 63 49
consolidated
subsidiaries
Net income $ 89 $ 229 $ 198 $ 801 $ 739
Net income
as a 2.7 % 6.2 % 5.6 % 5.6 % 5.7 %
percentage
of net sales
We believe EBIT is a useful measure of our operating performance for the periods presented as it illustrates our operating performance without regard to financing methods, capital structure or income taxes. 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.
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 was as follows:
Three months ended For the years ended
December September December 31, December 31, December 31,
31, 28,
2008 2008 2007 2008 2007
in millions
North
American $ 28 $ 26 $ 24 $ 100 $ 83
distributors
Dongfeng
Cummins
Engine 5 16 12 55 41
Company,
Ltd.
Chongqing
Cummins
Engine 7 9 7 30 22
Company,
Ltd.
Shanghai
Fleetguard 1 2 2 8 6
Filter Co.
Ltd.
Tata Cummins ― ― 4 7 13
Ltd.
Cummins
MerCruiser (2 ) (1 ) 2 3 11
Diesel
Marine LLC
All others 6 9 4 28 16
Cummins
share of net 45 61 55 231 192
income
Royalty and
interest 6 5 4 22 13
income
Equity,
royalty and
interest $ 51 $ 66 $ 59 $ 253 $ 205
income from
investees
NOTE 2. RESTRUCTURING CHARGES
We have executed restructuring actions primarily in the form of voluntary and involuntary separation programs in the fourth quarter of 2008. These actions were in response to the continued deterioration we saw in our U.S. businesses and most key markets around the world in the second half of 2008, as well as a reduction in orders in most U.S. and global markets for 2009. We reduced our worldwide professional workforce by approximately 650 employees. We offered a voluntary retirement package to certain active professional employees in the United States based on a clearly defined set of criteria. We also took involuntary actions which included certain hourly employees. The compensation packages contained salary and continuation of benefits, including health care, life insurance and outplacement services. The voluntary retirement package was accepted by approximately 150 employees. The remaining reductions of approximately 500 employees were involuntary. The expenses recorded during the year ended December 31, 2008 included severance costs related to both voluntary and involuntary terminations. During 2008, we incurred total pretax expenses related to the restructuring initiative of approximately $37 million.
Employee termination and severance costs were recorded based on approved plans developed by the businesses and corporate management which specified positions to be eliminated, benefits to be paid under existing severance plans or statutory requirements and the expected timetable for completion of the plan. Estimates of restructuring were made based on information available at the time charges were recorded. Due to the inherent uncertainty involved, actual amounts paid for such activities may differ from amounts initially recorded and we may need to revise previous estimates.
CUMMINS INC. AND SUBSIDIARIES
SELECTED FOOTNOTE DATA
(Unaudited)
NOTE 3. OTHER (EXPENSE) INCOME
Other (expense) income included the following:
Three months ended For the years ended
December 31, September December 31, December 31, December 31,
28,
2008 2008 2007 2008 2007
in millions
Other
(expense)
income:
Change in
cash
surrender
value of
corporate
owned $ (36 ) $ ― $ ― $ (36 ) $ ―
life
insurance
Foreign
currency (23 ) (10 ) 12 (46 ) 28
(losses)
gains
Other, 9 3 1 12 5
net
Total
other
(expense) $ (50 ) $ (7 ) $ 13 $ (70 ) $ 33
income,
net
NOTE 4. INCOME TAXES
Our effective tax rate in the fourth quarter of 2008 was 12.5 percent compared to 31.3 percent for 2007. The decrease is primarily due to greater foreign earnings in 2008, which are subject to lower tax rates. The fourth quarter effective tax rate also includes a $10 million (0.8 percent) reduction due to the legislative reinstatement of the U.S. research tax credit. The full-year 2008 effective tax rate was 30.9 percent and we expect our full-year 2009 effective tax rate to be sustained at approximately 31 percent.
NOTE 5. DEPRECIATION AND AMORTIZATION
Depreciation and amortization expense included in operating activities of the Condensed Consolidated Statements of Cash Flows for the years ended December 31, 2008 and 2007 was $314 million and $290 million, respectively.
Sales
$Millions Q1 Q2 Q3 Q4 YTD
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
2007
Engine Business
Heavy-Duty 424 473 520 531 1,948
Truck
Medium Duty 206 320 359 399 1,284
Truck+Bus
Light Duty 288 418 388 246 1,340
Auto+RV
Industrial 617 665 661 733 2,676
Stationary 230 233 225 246 934
Power
TOTAL ENGINE 1,765 2,109 2,153 2,155 8,182
BUSINESS
Power Generation 675 769 776 840 3,060
Components 657 757 741 777 2,932
Distributors 309 368 395 468 1,540
Eliminations (589 ) (660 ) (693 ) (724 ) (2,666 )
TOTAL 2,817 3,343 3,372 3,516 13,048
Engine
Shipments
Units Q1 Q2 Q3 Q4 YTD
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 Horsepower 4,600 5,500 5,300 5,200 20,600
TOTAL 143,500 152,000 137,100 114,600 547,200
2007
Midrange 107,200 133,500 130,500 115,600 486,800
Heavy-duty 19,000 23,800 24,800 23,800 91,400
High Horsepower 4,300 4,700 4,600 4,900 18,500
TOTAL 130,500 162,000 159,900 144,300 596,700
Source: Cummins Inc.
Released February 3, 2009