UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES EXCHANGE ACT OF 1934

Date of Report: July 27, 2006

  CUMMINS INC.
(Exact name of registrant as specified in its charter)

500 Jackson Street
P. O. Box 3005
Columbus, IN  47202-3005
(Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code:  (812) 377-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02. Results of Operations and Financial Condition.
 

 Item 7.01.  Regulation FD Disclosure

 

The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 7.01, "Regulation FD Disclosure."
 

On July 27, 2006, Cummins Inc. (the "Company" or "we") issued the attached press release reporting its financial results for the second quarter of 2006.  A copy of Cummins' press release is attached hereto as Exhibit 99 and hereby incorporated by reference.
 

Item 9.01. Financial Statements and Exhibits.
 

(c)

The following exhibit is furnished herewith:

99-Press Release dated July 27, 2006

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2006

Cummins Inc.
/s/ Marsha L. Hunt ______________________________ Marsha L. Hunt Vice President - Corporate Controller (Principal Accounting Officer)

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Contact:

Mark Land - Director, Public Relations
(317) 610-2456
mark.d.land@cummins.com

For Immediate Release

July 27, 2006

Strong sales and margins fuel another record quarter for Cummins
- -- Company continues to strengthen balance sheet and invest for future growth --

COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) continued to deliver on its commitment to produce strong returns for its shareholders, reporting record sales and profits for the second quarter. Sales volumes remain robust across all operating segments and gross margin was at its highest level in 10 years.

Second-quarter sales of $2.84 billion represented a 14 percent increase from $2.49 billion in the same period in 2005. Net earnings rose 56 percent to $220 million, or $4.38 per diluted share, from $141 million ($2.83 a share) the same period a year ago.

Second-quarter net income includes $28 million, or 55 cents a share, for the favorable resolution of tax audits related to prior years. Absent the tax benefit, net earnings rose 36 percent from the same period last year.

"We had a terrific second quarter and remain on pace for a record 2006," said Cummins Chairman and Chief Executive Officer Tim Solso. "Our markets are strong around most of the world, we are winning new business and we continue to serve our customers well.

"Our financial performance has allowed us to continue to create value for our stakeholders.  For example, we have reduced debt significantly and increased our pension funding. At the same time we are investing in growth markets that will enhance our brand position and help us deliver strong returns well into the future."

Earnings Before Interest and Taxes (EBIT) increased 38 percent to $325 million, or 11.4 percent of sales, from $235 million during the second quarter of 2005.  Gross margin increased to 23.6 percent - its highest level since 1996 - up from 22.1 percent the same period last year.

Year-to-date cash flow from operations is running $200 million ahead of the same point last year.  "As a result of stronger earnings and less cash used for working capital, we are on pace to set a record for cash flow from operations this year," said Cummins Chief Financial Officer Jean Blackwell.

Cummins expects to earn between $3.35 and $3.45 a share in the third quarter and today raised its full-year guidance to $14.00-$14.20, from its previous guidance of $12.40 - $12.60 a share.

Cummins announced this week that it has reached agreement with a major automotive manufacturer to produce and market a light-duty diesel engine that will be used in a variety of automotive applications, including standard pickup trucks and sport utility vehicles.  Certain bus, marine and industrial applications also will be served by this engine family.   

The first vehicles with this engine are expected to be ready for market by the end of the decade. Cummins anticipates that this diesel engine will provide an average of 30 percent fuel savings, depending on the drive cycle, over gasoline-powered engines for comparable vehicles.

The Company also continued to strengthen its position in the North American medium-duty truck engine market, earning additional business from one of its key customers during the second quarter. PACCAR announced that starting in January 2007 Cummins will be the exclusive supplier of 6- and 8-liter medium-duty truck engines for its Peterbilt and Kenworth trucks.

Additionally, Cummins announced this month that it will increase its quarterly dividend by 20 percent to 36 cents a share and that the Board of Directors has authorized the repurchase of up to 2 million shares of common stock.

"Over the past several years, we have worked hard to reshape our company to become more results-oriented and to focus on turning a greater share of our sales into profits," Solso said. "Our announcement today reflects the results of our ongoing efforts."

Second-quarter details

Engine Segment
Revenues rose 14 percent to $1.9 billion and Segment EBIT increased 22 percent to $190 million, or 10.0 percent of sales. Segment revenues and EBIT were quarterly records.

Shipments to the global on-highway markets were up 15 percent and off-highway market shipments rose 23 percent, as nearly every end market experienced growth. Demand for North American heavy-duty engines remained strong, with shipments up 14 percent from the same period in 2005.

Shipments to the global light-duty automotive and RV markets increased 24 percent. The global construction market remained strong, with sales increasing by 23 percent on strength in North America, China, India and the Middle East.

Power Generation Segment
Segment sales rose 21 percent from the same period last year to $598 million, led by strong gains in the Commercial generator and alternator businesses. Segment EBIT rose 60 percent to $56 million, or 9.4 percent of sales.

Sales of commercial generator sets rose 27 percent, while alternator sales rose 23 percent. Sales grew in most geographic markets, led by North America, India, the Middle East and Latin America. Segment sales in China dropped slightly from the same period in 2005. In the Consumer business, continued softness in the North American motorized RV market was more than offset by gains in the towable RV market, residential standby power and marine sales.

Components Segment
The segment - - made up of the Company's filtration, turbocharger, fuel systems and exhaust aftertreatment businesses - continued its recent improvement, posting a 10 percent sales gain to a record $563 million and a 62 percent improvement in Segment EBIT to $34 million, or 6.0 percent of sales. 

Strong sales growth in North and Latin American filtration markets, as well as profit improvement initiatives, helped drive this performance

Distribution Segment
Segment Sales grew 13 percent from the second quarter 2005 to $336 million, and Segment EBIT increased 38 percent to $36 million, or 10.7 percent of sales.

The Segment benefited from joint venture income gains at the Company's North American distributors, increases in power generation sales in Europe and the Middle East and strong parts sales in East Asia. 

Presentation of Non-GAAP Financial Information
EBIT is a non-GAAP financial measure used in this release. EBIT 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. 

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 more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $550 million on sales of $9.9 billion in 2005. Press releases can be found on the Web at www.cummins.com. 

Forward-looking statements disclosure
Information provided and statements on the webcast and in this release that are 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.

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CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited) (a)

		Three months ended										Six months ended
		July 2,				June 26,			April 2,			July 2,			June 26,
		2006				2005			2006			2006			2005
		Millions (except per share amounts)
Net sales		$	2,842			$	2,490		$	2,678		$	5,520		$	4,698
Cost of sales		2,170				1,940			2,079			4,249			3,692
Gross margin		672				550			599			1,271			1,006
Operating expenses and income
Selling and administrative expenses		320				287			301			621			546
Research and engineering expenses		80				73			82			162			136
Investee equity, royalty and other income		(37			)	(38		)	(31		)	(68		)	(72		)
Other operating income, net		---				(3		)	(1		)	(1		)	(3		)
Operating earnings		309				231			248			557			399
Interest income		(10			)	(4		)	(9		)	(19		)	(9		)
Interest expense		26				28			27			53			56
Other (income) expenses, net		(6			)	---			2			(4		)	10
Earnings before income taxes and minority interests		299				207			228			527			342
Provision for income taxes		67				58			85			152			92
Minority interests in earnings of consolidated subsidiaries		12				8			8			20			12
Net earnings		$	220			$	141		$	135		$	355		$	238
Earnings per share
Basic		$		4.81		$	3.20		$	3.04		$	7.87		$	5.40
Diluted		$		4.38		$	2.83		$	2.70		$	7.08		$	4.80
Cash dividends declared per share		$		0.30		$	0.30		$	0.30		$	0.60		$	0.60