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For Immediate Release

April 30, 2019

Cummins Announces Strong First Quarter Results; Raises Full Year Profit Outlook

First quarter revenues of $6.0 billion; GAAP1 Net Income of $663 million
EBITDA in the first quarter was 17.2 percent of sales; Diluted EPS of $4.20
The company is maintaining its full year 2019 revenue guidance of flat to up 4 percent
EBITDA now expected to be in the range of 16.25 to 16.75 percent; up from 15.75 to 16.25 percent

COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2019.

First quarter revenues of $6.0 billion increased 8 percent from the same quarter in 2018. Increased truck production in North America and stronger demand in global construction and North American power generation markets drove the majority of the revenue increase. Currency negatively impacted revenues by 2 percent primarily due to a stronger US dollar.

First quarter sales in North America improved by 13 percent while international revenues increased by 1 percent.

“The company shipped a record number of truck engines in North America during the first quarter” said Chairman and CEO Tom Linebarger. “Our market-leading position in this region reflects our close partnerships with our customers who rely on us to provide a broad range of power solutions for their needs.”


1


Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were a record $1.0 billion, or 17.2 percent of sales, compared to $700 million or 12.6 percent of sales a year ago. First quarter results include a non-segment and non-taxable gain of $37 million ($0.23 per diluted share) related to the mark to market impact on assets related to our non-qualified benefit plans.

Net income attributable to Cummins in the first quarter was $663 million ($4.20 per diluted share), compared to net income of $325 million ($1.96 per diluted share), or $403 million ($2.43 per diluted share) excluding the impact of tax legislation in the first quarter of 2018.

“We achieved record EBITDA in the first quarter while also celebrating our 100th anniversary,” Linebarger said. “We are on track to deliver record results for the year and return significant capital to investors, and will continue to invest across our broad portfolio to power a strong future for our stakeholders.”

2019 Outlook:

Based on the current forecast, Cummins is maintaining its 2019 revenue guidance of flat to up 4 percent driven primarily by increased demand in North America on-highway markets. EBITDA is expected to be in the range of 16.25% to 16.75% of sales, an increase from the prior range of 15.75% to 16.25% of sales, primarily due to lower projected material costs. The Company expects to return 75 percent of Operating Cash Flow to shareholders in 2019 in the form of dividends and share repurchases.

Our outlook does not include any potential impact of the company’s recently announced review of its emission certification process and compliance with emissions standards.

First Quarter 2019 Highlights:

Cummins was named to Ethisphere’s list of the World’s Most Ethical Companies for a 12th consecutive year.

Barron’s magazine announced that Cummins made its 100 Most Sustainable Companies list, moving from No. 60 in its inaugural ranking in 2018 to No. 14 in its 2019 list.

The Human Rights Campaign (HRC) announced that Cummins received a perfect score for a 14th consecutive year in its Corporate Equality Index.

Amtrak announced that it will be purchasing 75 Charger locomotives for delivery starting in 2021 which will use Cummins’ QSK95 Tier 4 engine systems to help deliver clean, efficient power for passenger trains.



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First quarter 2019 detail (all comparisons to same period in 2018)

Engine Segment

Sales - $2.7 billion, up 8 percent
Segment EBITDA - $438 million, or 16.5 percent of sales, compared to $286 million or 11.7 percent of sales
On-highway revenues increased 9 percent and off-highway revenues increased 6 percent primarily due to increased demand in North America truck and global construction markets

Distribution Segment

Sales - $2.0 billion, up 8 percent
Segment EBITDA - $171 million, or 8.5 percent of sales, compared to $123 million or 6.6 percent of sales
Revenues in North America increased by 10 percent and international sales grew by 4 percent
Strong demand across all product lines in North America, especially data centers, was partially offset by the unfavorable impact from a stronger US dollar, which impacted sales by 2 percent

Components Segment

Sales - $1.9 billion, up 6 percent
Segment EBITDA - $325 million, or 17.5 percent of sales, compared to $227 million or 12.9 percent of sales
Revenues in North America increased by 17 percent due to higher heavy and medium-duty truck production while international sales declined by 8 percent

Power Systems Segment

Sales - $1.1 billion, flat versus prior year
Segment EBITDA - $138 million, or 12.8 percent of sales, compared to $142 million, or 13.2 percent of sales
Industrial revenues increased 1 percent while Power generation revenues decreased 1 percent


3


Electrified Power Segment

Sales - $3 million
Segment EBITDA loss - $29 million

1 Generally Accepted Accounting Principles

About Cummins
Cummins Inc., a global technology leader, is a corporation of complementary business segments designing, manufacturing, distributing and servicing a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including transmissions, battery systems, fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 62,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations, and over 7,600 dealer locations. In 2018, the company earned about $2.1 billion on sales of $23.8 billion. See how Cummins is powering a world that’s Always On by accessing news releases and more information at https://www.cummins.com/always-on. Follow Cummins on Twitter at www.twitter.com/cummins and on YouTube at www.youtube.com/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
and EBITDA percentage for the full year of 2019. 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 (i) any adverse results of our internal review into our emissions certification process and compliance with emissions standards; (ii) a sustained slowdown or significant downturn in our markets; (iii) our truck manufacturing and OEM customers discontinuing outsourcing their engine needs; (iv) the development of new technologies; (v) the discovery of any significant additional problems with our engine platforms or aftertreatment systems in North America; (vi) performance or safety-related recalls; (vii) policy changes impacting international trade; (viii) the United Kingdom’s decision to end its membership in the European Union; (xi) lower than anticipated market acceptance of our new or existing products or services; (x) a slowdown in infrastructure development and/or depressed commodity prices; (xi) vulnerability to supply chain shortages from single-sourced suppliers; (xii) potential security breaches or other disruptions to our information technology systems and data security; (xiii) financial distress or a change-in-control of one of our large truck OEM customers; (xiv) our reliance on significant earnings from investees that we do not directly control; (xv) our pursuit of strategic acquisitions and divestitures; and (xvi) other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2018 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking

4


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 SEC, 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
EBITDA 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 EBITDA is a measure used internally to assess the performance of the operating units.

We believe net income and diluted earnings per share attributable to Cummins Inc. excluding Tax Legislation is a useful measure of our operating performance without regard to Tax Legislation. These measures are not in accordance with, or an alternative for GAAP and may not be consistent with measures used by other companies.

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.



5


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


 
 
Three months ended
In millions, except per share amounts
 
March 31,
2019
 
April 1,
2018
NET SALES
 
$
6,004

 
$
5,570

Cost of sales
 
4,472

 
4,370

GROSS MARGIN
 
1,532

 
1,200

OPERATING EXPENSES AND INCOME
 
 
 
 
Selling, general and administrative expenses
 
593

 
577

Research, development and engineering expenses
 
237

 
210

Equity, royalty and interest income from investees
 
92

 
115

Other operating income (expense), net
 
5

 
2

OPERATING INCOME
 
799

 
530

Interest income
 
12

 
7

Interest expense
 
32

 
24

Other income, net
 
66

 
10

INCOME BEFORE INCOME TAXES
 
845

 
523

Income tax expense
 
176

 
198

CONSOLIDATED NET INCOME
 
669

 
325

Less: Net income attributable to noncontrolling interests
 
6

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
663

 
$
325

 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 
 
 
Basic
 
$
4.22

 
$
1.97

Diluted
 
$
4.20

 
$
1.96

 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
 

 
 
Basic
 
157.2

 
164.9

Diluted
 
157.7

 
165.7

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

















 

6


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)


In millions, except par value
 
March 31,
2019
 
December 31,
2018
ASSETS
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
1,328

 
$
1,303

Marketable securities
 
246

 
222

Total cash, cash equivalents and marketable securities
 
1,574

 
1,525

Accounts and notes receivable, net
 
4,025

 
3,866

Inventories
 
3,893

 
3,759

Prepaid expenses and other current assets
 
599

 
668

Total current assets
 
10,091

 
9,818

Long-term assets
 
 
 
 
Property, plant and equipment, net
 
4,066

 
4,096

Investments and advances related to equity method investees
 
1,303

 
1,222

Goodwill
 
1,125

 
1,126

Other intangible assets, net
 
895

 
909

Pension assets
 
939

 
929

Other assets
 
1,427

 
962

Total assets
 
$
19,846

 
$
19,062

 
 
 
 
 
LIABILITIES
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable (principally trade)
 
$
3,018

 
$
2,822

Loans payable
 
70

 
54

Commercial paper
 
709

 
780

Accrued compensation, benefits and retirement costs
 
364

 
679

Current portion of accrued product warranty
 
762

 
654

Current portion of deferred revenue
 
509

 
498

Other accrued expenses
 
958

 
852

Current maturities of long-term debt
 
37

 
45

Total current liabilities
 
6,427

 
6,384

Long-term liabilities
 
 
 
 
Long-term debt
 
1,605

 
1,597

Pensions and other postretirement benefits
 
520

 
532

Accrued product warranty
 
682

 
740

Deferred revenue
 
697

 
658

Other liabilities
 
1,188

 
892

Total liabilities
 
$
11,119

 
$
10,803

 
 
 
 
 
EQUITY
 
 
 
 
Cummins Inc. shareholders’ equity
 
 
 
 
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued
 
$
2,273

 
$
2,271

Retained earnings
 
13,401

 
12,917

Treasury stock, at cost, 64.9 and 64.4 shares
 
(6,111
)
 
(6,028
)
Common stock held by employee benefits trust, at cost, 0.3 and 0.4 shares
 
(4
)
 
(5
)
Accumulated other comprehensive loss
 
(1,739
)
 
(1,807
)
Total Cummins Inc. shareholders’ equity
 
7,820

 
7,348

Noncontrolling interests
 
907

 
911

Total equity
 
$
8,727

 
$
8,259

Total liabilities and equity
 
$
19,846

 
$
19,062

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.



7


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



 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Consolidated net income
 
$
669

 
$
325

Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities
 
 
 
 
Depreciation and amortization
 
157

 
154

Deferred income taxes
 
11

 
(27
)
Equity in income of investees, net of dividends
 
(64
)
 
(95
)
Pension contributions (in excess of) under expense, net
 
(17
)
 
13

Other postretirement benefits payments in excess of expense, net
 
(12
)
 
(5
)
Stock-based compensation expense
 
9

 
9

(Gain) loss on corporate owned life insurance
 
(37
)
 
3

Foreign currency remeasurement and transaction exposure
 
79

 
38

Changes in current assets and liabilities
 
 
 
 
Accounts and notes receivable
 
(135
)
 
(217
)
Inventories
 
(107
)
 
(259
)
Other current assets
 
67

 
56

Accounts payable
 
166

 
246

Accrued expenses
 
(293
)
 
(337
)
Changes in other liabilities
 
64

 
27

Other, net
 
(145
)
 
(48
)
Net cash provided by (used in) operating activities
 
412

 
(117
)
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Capital expenditures
 
(109
)
 
(72
)
Investments in internal use software
 
(20
)
 
(15
)
Investments in and advances to equity investees
 
(10
)
 
(16
)
Investments in marketable securities—acquisitions
 
(121
)
 
(67
)
Investments in marketable securities—liquidations
 
103

 
82

Cash flows from derivatives not designated as hedges
 
55

 
27

Other, net
 
31

 
25

Net cash used in investing activities
 
(71
)
 
(36
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Net (payments) borrowings of commercial paper
 
(71
)
 
295

Payments on borrowings and finance lease obligations
 
(10
)
 
(16
)
Distributions to noncontrolling interests
 
(13
)
 
(11
)
Dividend payments on common stock
 
(179
)
 
(178
)
Repurchases of common stock
 
(100
)
 
(163
)
Other, net
 
26

 
21

Net cash used in financing activities
 
(347
)
 
(52
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
31

 
43

Net increase (decrease) in cash and cash equivalents
 
25

 
(162
)
Cash and cash equivalents at beginning of year
 
1,303

 
1,369

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
1,328

 
$
1,207

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


8

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

 
In millions
 
Engine
 
Distribution
 
Components
 
Power Systems
 
Electrified Power
 
Total Segments
 
Intersegment Eliminations (1)
 
Total
 
Three months ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,984

 
$
1,993

 
$
1,401

 
$
623

 
$
3

 
$
6,004

 
$

 
$
6,004

 
Intersegment sales
 
669

 
8

 
460

 
454

 

 
1,591

 
(1,591
)
 

 
Total sales
 
2,653

 
2,001

 
1,861

 
1,077

 
3

 
7,595

 
(1,591
)
 
6,004

 
Research, development and engineering expenses
 
78

 
7

 
75

 
56

 
21

 
237

 

 
237

 
Equity, royalty and interest income from investees
 
56

 
11

 
10

 
15

 

 
92

 

 
92

 
Interest income
 
4

 
4

 
2

 
2

 

 
12

 

 
12

 
Segment EBITDA
 
438

 
171

 
325

 
138

 
(29
)
 
1,043

 
(10
)
 
1,033

 
Depreciation and amortization (2)
 
50

 
29

 
46

 
29

 
2

 
156

 

 
156

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA as a percentage of total sales
 
16.5
%
 
8.5
%
 
17.5
%
 
12.8
%
 
NM

 
13.7
%
 
 
 
17.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended April 1, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,813

 
$
1,847

 
$
1,313

 
$
595

 
$
2

 
$
5,570

 
$

 
$
5,570

 
Intersegment sales
 
633

 
6

 
440

 
479

 

 
1,558

 
(1,558
)
 

 
Total sales
 
2,446

 
1,853

 
1,753

 
1,074

 
2

 
7,128

 
(1,558
)
 
5,570

 
Research, development and engineering expenses
 
79

 
5

 
62

 
57

 
7

 
210

 

 
210

 
Equity, royalty and interest income from investees
 
67

 
13

 
16

 
19

 

 
115

 

 
115

 
Interest income
 
2

 
2

 
1

 
2

 

 
7

 

 
7

 
Segment EBITDA
 
286

 
123

 
227

 
142

 
(10
)
 
768

 
(68
)
 
700

 
Depreciation and amortization (2)
 
49

 
27

 
46

 
30

 
1

 
153

 

 
153

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA as a percentage of total sales
 
11.7
%
 
6.6
%
 
12.9
%
 
13.2
%
 
NM

 
10.8
%
 
 
 
12.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
"NM" - not meaningful information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 31, 2019 and April 1, 2018.
(2
)
Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and $1 million for the three month periods ended March 31, 2019 and April 1, 2018. A portion of depreciation expense is included in "Research, development and engineering expense."
 

9


CUMMINS INC. AND SUBSIDIARIES
RECONCILIATION OF SEGMENT INFORMATION
(Unaudited)


A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:
 
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Total EBITDA
 
$
1,033

 
$
700

Less:
 
 
 
 
Depreciation and amortization
 
156

 
153

Interest expense
 
32

 
24

Income before income taxes
 
$
845

 
$
523



10


CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)




EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Manufacturing entities
 

 

Beijing Foton Cummins Engine Co., Ltd.
 
$
21

 
$
21

Dongfeng Cummins Engine Company, Ltd.
 
14

 
17

Chongqing Cummins Engine Company, Ltd.
 
12

 
17

All other manufacturers
 
27

 
36

Distribution entities
 


 


Komatsu Cummins Chile, Ltda.
 
6

 
7

All other distributors
 
(1
)
 

Cummins share of net income
 
79

 
98

Royalty and interest income
 
13

 
17

Equity, royalty and interest income from investees
 
$
92

 
$
115



11


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


Reconciliation of Non GAAP measures - Earnings before interest, income taxes, noncontrolling interests, depreciation and amortization (EBITDA)
 
 
 
 
 
We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard for financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
EBITDA is not in accordance with, or an alternative for, accounting principles generally accepted in the United States (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBITDA for each of the applicable periods:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Net income attributable to Cummins Inc.
 
$
663

 
$
325

 
 
 
 
 
Net income attributable to Cummins Inc. as a percentage of net sales
 
11.0
%
 
5.8
%
 
 
 
 
 
Add:
 
 
 
 
Net income attributable to noncontrolling interests
 
6

 

Consolidated net income
 
669

 
325

 
 
 
 
 
Add:
 
 
 
 
Interest expense
 
32

 
24

Income tax expense
 
176

 
198

Depreciation and amortization
 
156

 
153

EBITDA
 
$
1,033

 
$
700

 
 
 
 
 
EBITDA as a percentage of net sales
 
17.2
%
 
12.6
%

Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding special discrete tax items

We believe these are useful measures of our operating performance for the periods presented as they illustrate our operating performance without regard to other discrete tax adjustments. These measures are not in accordance with, or an alternative for GAAP and may not be consistent with measures used by other companies. This should be considered supplemental data. The following table reconciles net income and diluted EPS attributable to Cummins Inc. to net income and diluted EPS attributable to Cummins Inc. excluding special discrete tax items for the following periods:

 
 
 
 
Three months ended
 
 
 
 
March 31,
2019
 
April 1,
2018
 
In millions, except per share amounts
 
Net Income
 
Diluted EPS
 
Net Income
 
Diluted EPS
 
Net income and diluted EPS attributable to Cummins Inc.
 
$
663

 
$
4.20

 
$
325

 
$
1.96

 
Special discrete tax items (1)
 

 

 
78

 
0.47

 
Net income and diluted EPS attributable to Cummins Inc. excluding special discrete tax items
 
$
663

 
$
4.20

 
$
403

 
$
2.43

 
 
 
 
 
 
 
 
 
 
 
(1)
Our effective tax rate for the three months ended April 1, 2018, was 37.9 percent and contained $78 million, or $0.47 per share, of unfavorable discrete tax items, primarily related to a Tax Legislation adjustment of $74 million. This included $39 million associated with changes related to the Tax Legislation measurement period adjustment and $35 million associated with the one-time recognition of deferred tax charges at historical tax rates on intercompany profit in inventory.

 

12


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


Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2019
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
979

 
$

 
$

 
$

 
$
979

Medium-duty truck and bus
 
721

 

 

 

 
721

Light-duty automotive
 
382

 

 

 

 
382

Off-highway
 
571

 

 

 

 
571

Total sales
 
$
2,653

 
$

 
$

 
$

 
$
2,653

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
815

 
$
920

 
$
958

 
$
959

 
$
3,652

Medium-duty truck and bus
 
692

 
777

 
699

 
687

 
2,855

Light-duty automotive
 
402

 
444

 
517

 
456

 
1,819

Off-highway
 
537

 
555

 
552

 
596

 
2,240

Total sales
 
$
2,446

 
$
2,696

 
$
2,726

 
$
2,698

 
$
10,566

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2019
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty
 
33,900

 

 

 

 
33,900

Medium-duty
 
79,000

 

 

 

 
79,000

Light-duty
 
56,400

 

 

 

 
56,400

Total units
 
169,300

 

 

 

 
169,300

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty
 
26,600

 
32,000

 
34,600

 
35,300

 
128,500

Medium-duty
 
74,000

 
83,500

 
76,000

 
77,600

 
311,100

Light-duty
 
61,900

 
68,500

 
76,800

 
66,200

 
273,400

Total units
 
162,500

 
184,000

 
187,400

 
179,100

 
713,000


13


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


Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2019
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts
 
$
844

 
$

 
$

 
$

 
$
844

Power generation
 
403

 

 

 

 
403

Engines
 
391

 

 

 

 
391

Service
 
363

 

 

 

 
363

Total sales
 
$
2,001

 
$

 
$

 
$

 
$
2,001

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts
 
$
808

 
$
817

 
$
800

 
$
809

 
$
3,234

Power generation
 
326

 
346

 
359

 
455

 
1,486

Engines
 
367

 
461

 
400

 
406

 
1,634

Service
 
352

 
370

 
372

 
380

 
1,474

Total sales
 
$
1,853

 
$
1,994

 
$
1,931

 
$
2,050

 
$
7,828

Component Segment Sales by Product Line
Sales for our Components segment by product line were as follows:
2019
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission solutions
 
$
854

 
$

 
$

 
$

 
$
854

Turbo technologies
 
335

 

 

 

 
335

Filtration
 
325

 

 

 

 
325

Electronics and fuel systems
 
198

 

 

 

 
198

Automated transmissions
 
149

 

 

 

 
149

Total sales
 
$
1,861

 
$

 
$

 
$

 
$
1,861

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission solutions
 
$
775

 
$
841

 
$
769

 
$
792

 
$
3,177

Turbo technologies
 
340

 
355

 
317

 
331

 
1,343

Filtration
 
320

 
324

 
308

 
313

 
1,265

Electronics and fuel systems
 
201

 
226

 
210

 
201

 
838

Automated transmissions
 
117

 
141

 
150

 
135

 
543

Total sales
 
$
1,753

 
$
1,887

 
$
1,754

 
$
1,772

 
$
7,166


14


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


Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification
Sales for our Power Systems segment by product line were as follows:
2019
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
$
567

 
$

 
$

 
$

 
$
567

Industrial
 
420

 

 

 

 
420

Generator technologies
 
90

 

 

 

 
90

Total sales
 
$
1,077

 
$

 
$

 
$

 
$
1,077

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
$
571

 
$
666

 
$
636

 
$
713

 
$
2,586

Industrial
 
414

 
483

 
380

 
386

 
1,663

Generator technologies
 
89

 
97

 
91

 
100

 
377

Total sales
 
$
1,074

 
$
1,246

 
$
1,107

 
$
1,199

 
$
4,626

High-horsepower unit shipments by engine classification were as follows:
2019
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
2,100

 

 

 

 
2,100

Industrial
 
1,600

 

 

 

 
1,600

Total units
 
3,700

 

 

 

 
3,700

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
2,100

 
2,300

 
2,400

 
2,300

 
9,100

Industrial
 
1,700

 
2,100

 
1,900

 
1,900

 
7,600

Total units
 
3,800

 
4,400

 
4,300

 
4,200

 
16,700

 

15