Cummins Reports Results for the First Quarter of 2013, Maintains Full Year Guidance for Revenues and EBIT

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  • First quarter revenues of $3.9 billion and EBIT 11.1 percent of sales
  • Continues to expect full year revenues to be flat to down 5 percent
  • Maintains full year EBIT guidance to be in the range 13 to 14 percent of sales

COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2013.

First quarter revenues of $3.9 billion decreased 12 percent from the first quarter of 2012. Revenues in North America declined by 15 percent and international revenues declined by 10 percent as the Company experienced weaker demand in most major geographies and end markets.

Earnings before interest and taxes (EBIT) were $437 million or 11.1 percent of sales, compared to $658 million or 14.7 percent of sales a year ago.

Net income attributable to Cummins in the first quarter was $282 million ($1.49 per diluted share), compared to $455 million ($2.38 per diluted share) in the first quarter of 2012.

The most significant decline in demand occurred within the Engine Business, with total unit volumes down 18 percent year-over-year. Shipments of high horsepower engines declined by 24 percent due to weakness in mining, oil and gas and power generation markets.

“As anticipated, we experienced weak demand in the first quarter in many of our major markets,” said Chairman and CEO Tom Linebarger. “While uncertainty remains in a number of markets, we expect that the first quarter will mark the low point of the year for Company revenues. We expect moderately improving order trends in on-highway and construction markets in North America to be the most significant drivers of improvement in revenues going forward. We continue to make investments in our distribution system and in new products as we remain focused on future profitable growth.”

Based on the current forecast, the Company expects full year revenues to be flat to down 5% and EBIT to be in the range of 13 to 14 percent of sales.

Recent highlights include:

  • Cummins was named to the Ethisphere Institute’s list of the World’s Most Ethical Companies for a sixth consecutive year.
  • Moody’s Investors Service agency announced that it has raised the unsecured rating of Cummins to A3.
  • FORTUNE magazine named Cummins one of America’s Most Admired Companies.
  • Cummins announced that the next-generation QSB4.5 engine will meet Tier 4 Final near-zero emissions standards with increased horsepower and a higher peak torque.
  • Cummins Westport announced that it has received certification for its ISX12 G (natural gas) engine from the U.S. Environmental Protection Agency.
  • Cummins launched the QSM12, a 12L heavy-duty engine for off-highway applications that meets US Tier 4 Final and EU stage IV near-zero emissions regulations.
  • Industrial manufacturer Eaton and Cummins unveiled a new powertrain package for the North American heavy-duty truck market that is expected to deliver a fuel economy improvement of three to six percent.
  • The first L9.3 engine rolled off the production line at Guangxi Cummins Engine Company Limited in Liuzhou, southern China, a joint venture between Cummins and LiuGong Machinery.

First quarter detail (all comparisons to same period in 2012)

Engine Segment

  • Sales – $2.3 billion, down 19 percent
  • Segment EBIT – $195 million, or 8.5 percent of sales, compared to $381 million or 13.3 percent of sales
  • Lower demand in North American heavy duty truck, oil and gas, and bus markets and global mining were the most significant drivers of the lower revenues
  • Demand increased modestly in North America, Latin America and Korea for engines for agricultural applications

Components

  • Sales - $1.0 billion, a decrease of 7 percent
  • Segment EBIT - $119 million, or 11.7 percent of sales, compared to $143 million or 13.0 percent of sales
  • Lower revenues primarily related to lower on-highway demand in North America

Power Generation

  • Sales – $746 million, down 4 percent
  • Segment EBIT – $51 million, or 6.8 percent of sales, compared to $76 million or 9.7 percent of sales
  • Lower demand in Europe, Brazil and China offsetting stronger revenues in North America, India and Africa

Distribution

  • Sales – $778 million, down 11% excluding acquisitions
  • Segment EBIT – $95 million, or 12.2 percent of sales, compared to $94 million or 12.1 percent of sales
  • Reduction in revenues due to weaker demand in the construction market in Europe, the oil and gas market in North America and a reduction in orders for power generation in Asia Pacific and the Middle East

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 46,000 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 6,500 dealer locations. Cummins earned $1.65 billion on sales of $17.3 billion in 2012. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at @Cummins and on YouTube at 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 2013. 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. 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
March 31, December 31, April 1,
In millions, except per share amounts 2013 2012 2012
NET SALES $ 3,922 $ 4,292 $ 4,472
Cost of sales   2,965   3,234     3,274
GROSS MARGIN 957 1,058 1,198
 
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 444 482 475
Research, development and engineering expenses 182 174 181
Equity, royalty and interest income from investees (Note 1) 82 82 104
Other operating income (expense), net   1   (19 )   2
OPERATING INCOME 414 465 648
 
Interest income 5 5 8
Interest expense 6 7 8
Other income (expense), net   18   10     2
INCOME BEFORE INCOME TAXES 431 473 650
 
Income tax expense (Note 2)   119   75     175
CONSOLIDATED NET INCOME 312 398 475
 
Less: Net income attributable to noncontrolling interests   30   29     20
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 282 $ 369   $ 455
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO CUMMINS INC.
Basic $ 1.50 $ 1.96 $ 2.39
Diluted $ 1.49 $ 1.95 $ 2.38
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 188.4 188.4 190.4
Diluted 188.8 188.8 190.8
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.50 $ 0.50 $ 0.40
(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 31, 2013 December 31, 2012
ASSETS
Current assets
Cash and cash equivalents $ 1,483 $ 1,369
Marketable securities   196     247  
Total cash, cash equivalents and marketable securities 1,679 1,616
Accounts and notes receivable, net 2,496 2,475
Inventories 2,387 2,221
Prepaid expenses and other current assets   658     855  
Total current assets   7,220     7,167  
Long-term assets
Property, plant and equipment 5,942 5,876
Accumulated depreciation   (3,173 )   (3,152 )
Property, plant and equipment, net   2,769     2,724  
Investments and advances related to equity method investees 944 897
Goodwill 444 445
Other intangible assets, net 366 369
Other assets   1,013     946  
Total assets $ 12,756   $ 12,548  
 
LIABILITIES
Current liabilities
Loans payable $ 13 $ 16
Accounts payable (principally trade) 1,554 1,339
Current maturities of long-term debt 54 61
Current portion of accrued product warranty 396 386
Accrued compensation, benefits and retirement costs 280 400
Deferred revenue 230 215
Taxes payable (including taxes on income) 203 173
Other accrued expenses   527     546  
Total current liabilities   3,257     3,136  
Long-term liabilities
Long-term debt 736 698
Postretirement benefits other than pensions 422 432
Other liabilities and deferred revenue   1,296     1,308  
Total liabilities   5,711     5,574  
 
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.2 and 222.4 shares issued 2,064 2,058
Retained earnings 7,530 7,343
Treasury stock, at cost, 32.5 and 32.6 shares (1,827 ) (1,830 )
Common stock held by employee benefits trust, at cost, 1.4 and 1.5 shares (17 ) (18 )
Accumulated other comprehensive loss
Defined benefit postretirement plans (775 ) (794 )
Other   (320 )   (156 )
Total accumulated other comprehensive loss   (1,095 )   (950 )
Total Cummins Inc. shareholders’ equity 6,655 6,603
Noncontrolling interests   390     371  
Total equity   7,045     6,974  
Total liabilities and equity $ 12,756   $ 12,548  
(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 31, 2013 April 1, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $ 312 $ 475
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization 98 85
Gain on fair value adjustment for consolidated investee (7 ) -
Deferred income taxes 5 (27 )
Equity in income of investees, net of dividends (36 ) (59 )
Pension contributions in excess of expense (54 ) (27 )
Other post-retirement benefits payments in excess of expense (8 ) (4 )
Stock-based compensation expense 7 7
Excess tax benefits on stock-based awards (7 ) (11 )
Translation and hedging activities (5 ) 10
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable (29 ) (135 )
Inventories (177 ) (209 )
Other current assets 158 (28 )
Accounts payable 204 148
Accrued expenses (142 ) (196 )
Changes in other liabilities and deferred revenue 47 29
Other, net   62     (37 )
Net cash provided by operating activities   428     21  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (114 ) (126 )
Investments in internal use software (12 ) (16 )
Investments in and advances to equity investees (24 ) (5 )
Acquisition of businesses, net of cash acquired (17 ) (5 )
Investments in marketable securities—acquisitions (133 ) (146 )
Investments in marketable securities—liquidations 187 184
Cash flows from derivatives not designated as hedges (30 ) 11
Other, net   -     1  
Net cash used in investing activities   (143 )   (102 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings - 12
Payments on borrowings and capital lease obligations (27 ) (38 )
Net borrowings (payments) under short-term credit agreements 15 -
Distributions to noncontrolling interests (19 ) (22 )
Dividend payments on common stock (95 ) (77 )
Repurchases of common stock - (8 )
Excess tax benefits on stock-based awards 7 11
Other, net   16     9  
Net cash used in financing activities   (103 )   (113 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (68 )   27  
Net increase (decrease) in cash and cash equivalents 114 (167 )
Cash and cash equivalents at beginning of year   1,369     1,484  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,483   $ 1,317  
(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   Components  

Power
Generation

  Distribution  

Non-segment
Items(1)

  Total
Three months ended March 31, 2013
External sales $ 1,885 $ 722 $ 539 $ 776 $ - $ 3,922
Intersegment sales   418     296     207     2     (923 )   -  
  Total sales 2,303 1,018 746 778 (923 ) 3,922
Depreciation and amortization(2) 52 24 12 10 - 98
Research, development and engineering expenses 105 57 18 2 - 182
Equity, royalty and interest income from investees 23 7 7 45 - 82
Interest income 2 1 2 - - 5
Segment EBIT 195 119 51 95((3 )) (23 ) 437
 
Segment EBIT as a percentage of total sales 8.5 % 11.7 % 6.8 % 12.2 % 11.1 %
 
Three months ended December 31, 2012
External sales $ 2,177 $ 662 $ 549 $ 904 $ - $ 4,292
Intersegment sales   329     277     216     3     (825 )   -  
Total sales 2,506 939 765 907 (825 ) 4,292
Depreciation and amortization(2) 50 23 13 11 - 97
Research, development and engineering expenses 92 60 20 2 - 174
Equity, royalty and interest income from investees 27 6 8 41 - 82
Interest income 2 - 2 1 - 5
Segment EBIT 252 78 42 84 24 480
Add back restructuring and other charges   20     6     12     14     -     52  
Segment EBIT excluding restructuring and other charges 272 84 54 98 24 532
 
Segment EBIT as a percentage of total sales 10.1 % 8.3 % 5.5 % 9.3 % 11.2 %
Segment EBIT excluding restructuring and other
charges as a percentage of total sales 10.9 % 8.9 % 7.1 % 10.8 % 12.4 %
 
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
 
Segment EBIT as a percentage of total sales 13.3 % 13.0 % 9.7 % 12.1 % 14.7 %
(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 March 31, 2013 and April 1, 2012. For the three months ended December 31, 2012, unallocated corporate expenses included a $20 million reserve ($12 million after-tax) related to legal matters. There were no other significant unallocated corporate expenses.
(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."
(3) Distribution segment EBIT includes a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Northwest.
 

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
March 31,   December 31,   April 1,
In millions 2013 2012   2012
Segment EBIT excluding restructuring and other charges $ 437 $ 532 $ 658
Add: Restructuring and other charges   -   (52 )   -
Segment EBIT 437 480 658
Less: Interest expense   6   7     8
Income before income taxes $ 431 $ 473   $ 650
 

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
March 31,   December 31,   April 1,
In millions 2013 2012 2012
Distribution Entities
North American distributors $ 35 $ 32 $ 40
Komatsu Cummins Chile, Ltda. 5 6 5
All other distributors - 1 1
Manufacturing Entities
Chongqing Cummins Engine Company, Ltd. 12 12 18
Dongfeng Cummins Engine Company, Ltd. 12 10 16
Shanghai Fleetguard Filter Co., Ltd. 3 3 3
Valvoline Cummins, Ltd. 3 2 2
Tata Cummins, Ltd. 1 4 4
Beijing Foton Cummins Engine Co., Ltd. 1 2 (2 )
Cummins Westport, Inc. - 3 5
Komatsu manufacturing alliances (1 ) (2 ) (1 )
All other manufacturers   2     2     1  
Cummins share of net income 73 75 92
Royalty and interest income   9     7     12  
Equity, royalty and interest income from investees $ 82   $ 82   $ 104  
 

NOTE 2. INCOME TAXES

Our effective tax rate for the year is expected to approximate 29.5 percent, excluding any one-time items that may arise. 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 and research tax credits. The tax rate for the three month period ended March 31, 2013, was 27.6 percent. This tax rate includes a discrete tax benefit of $28 million attributable to the 2012 research credit as well as a discrete tax expense of $17 million, which primarily relates to the write-off of a deferred tax asset deemed unrecoverable. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law and reinstated the research tax credit. The expiration of this credit resulted in a higher income tax provision of $28 million in 2012. As tax law changes are accounted for in the period of enactment, we recognized the discrete tax benefit in the first quarter of 2013.

Our effective tax rate for the three months ended April 1, 2012, was 26.9 percent. The increase in the 2013 effective tax rate compared to 2012 is due primarily to an unfavorable change in the pre-tax mix of income taxed in higher rate jurisdictions, partially offset by $11 million of net discrete tax benefits.

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 one-time income tax items and restructuring charges. 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 March 31, 2013, December 31, 2012 and April 1, 2012.

      Three months ended
March 31, 2013   December 31, 2012   April 1, 2012
In millions Net Income   Diluted EPS Net Income   Diluted EPS Net Income   Diluted EPS
Net income attributable to Cummins Inc. $ 282 $ 1.49 $ 369 $ 1.95 $ 455 $ 2.38
Add
Restructuring and other charges - - 35 0.19 - -
Less
One-time tax benefits(1) 11 0.05 39 0.21 - -
Net income attributable to Cummins Inc.                        
excluding special items $ 271 $ 1.44 $ 365 $ 1.93 $ 455 $ 2.38
(1)   The one-time tax items for the three months ended March 31, 2013, included a discrete tax benefit of $28 million attributable to the 2012 research credit as well as a discrete tax expense of $17 million, which relates to the write-off of a deferred tax asset deemed unrecoverable. The one-time tax benefits for the three months ended December 31, 2012, related primarily to benefits resulting from transactions entered into and elections made with respect to our U.K. operations.
 

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Earnings before interest expense, income taxes, noncontrolling interests and restructuring and other charges

We define EBIT as earnings or loss before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries (EBIT). We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. Below is a reconciliation of EBIT and EBIT excluding restructuring and other charges, non-GAAP financial measures, to “Net income attributable to Cummins Inc.,” for each of the applicable periods:

        Three months ended
March 31,   December 31,   April 1,
In millions 2013 2012 2012
Earnings before interest expense, income taxes and
special items $ 437 $ 532 $ 658
 
Earnings before interest expense, income taxes and
special items as a percentage of net sales 11.1 % 12.4 % 14.7 %
 
Less
Restructuring and other charges   -     52     -  
 
Earnings before interest expense and income taxes $ 437 $ 480 $ 658
 
EBIT as a percentage of net sales 11.1 % 11.2 % 14.7 %
 
Less
Interest expense 6 7 8
Income tax expense   119     75     175  
Consolidated net income   312     398     475  
 
Less
Net income attributable to noncontrolling interests   30     29     20  
Net income attributable to Cummins Inc. $ 282   $ 369   $ 455  
 
Net income attributable to Cummins Inc. as a
percentage of net sales 7.2 % 8.6 % 10.2 %
 

CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)

Engine segment net sales by market

2013          
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 654 $ - $ - $ - $ 654
Medium-duty truck and bus 448 - - - 448
Light-duty automotive and RV 260 - - - 260
Industrial 714 - - - 714
Stationary power   227   -   -   -   227
  Total sales $ 2,303 $ - $ - $ - $ 2,303
 
2012
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 892 $ 807 $ 656 $ 609 $ 2,964
Medium-duty truck and bus 526 512 478 575 2,091
Light-duty automotive and RV 286 297 353 343 1,279
Industrial 861 859 766 747 3,233
Stationary power   294   366   274   232   1,166
Total sales $ 2,859 $ 2,841 $ 2,527 $ 2,506 $ 10,733

Unit shipments by engine classification (including unit shipments to Power Generation)

2013              
Units Q1 Q2 Q3 Q4 YTD
Midrange 94,600 - - - 94,600
Heavy-duty 24,900 - - - 24,900
High-horsepower 4,200 - - - 4,200
  Total units 123,700 - - - 123,700
 
2012
Units Q1 Q2 Q3 Q4 YTD
Midrange 109,000 110,000 113,000 108,500 440,500
Heavy-duty 36,000 33,000 26,000 24,100 119,100
High-horsepower 5,500 5,800 4,600 3,900 19,800
Total units 150,500 148,800 143,600 136,500 579,400
 

CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)

Component segment sales by business

2013            
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 400 $ - $ - $ - $ 400
Turbo technologies 266 - - - 266
Filtration 255 - - - 255
Fuel systems   97   -   -   -   97
  Total sales $ 1,018 $ - $ - $ - $ 1,018
 
2012
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 404 $ 349 $ 325 $ 337 $ 1,415
Turbo technologies 298 297 257 254 1,106
Filtration 270 266 260 252 1,048
Fuel systems   127   124   96   96   443
Total sales $ 1,099 $ 1,036 $ 938 $ 939 $ 4,012

Power generation segment sales by business

2013              
In millions Q1 Q2 Q3 Q4 YTD
Power products $ 409 $ - $ - $ - $ 409
Power systems 179 - - - 179
Generator technologies 126 - - - 126
Power solutions   32   -   -   -   32
  Total sales $ 746 $ - $ - $ - $ 746
 
2012
In millions Q1 Q2 Q3 Q4 YTD
Power products $ 375 $ 459 $ 425 $ 395 $ 1,654
Power systems 188 217 174 178 757
Generator technologies 141 160 138 127 566
Power solutions   76   73   77   65   291
Total sales $ 780 $ 909 $ 814 $ 765 $ 3,268

Distribution segment sales by business

2013              
In millions Q1 Q2 Q3 Q4 YTD
Parts and filtration $ 322 $ - $ - $ - $ 322
Power generation 163 - - - 163
Engines 152 - - - 152
Service   141   -   -   -   141
  Total sales $ 778 $ - $ - $ - $ 778
 
2012
In millions Q1 Q2 Q3 Q4 YTD
Parts and filtration $ 288 $ 302 $ 326 $ 319 $ 1,235
Power generation 186 201 178 242 807
Engines 166 147 157 195 665
Service   135   144   140   151   570
Total sales $ 775 $ 794 $ 801 $ 907 $ 3,277

Cummins Inc.
Carole Casto, Executive Director – Corporate Communications, 317-610-2480

Source: Cummins Inc.

Released April 30, 2013