Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 October 27, 2015 - 7:30 AM EDT
Print Email Article Font Down Font Up
Cummins Announces Actions to Respond to Slowdown in Global Markets and Reports Third Quarter 2015 Results

  • Third quarter revenues of $4.6 billion, EBIT of 12.5 percent of sales
  • Full year outlook revised down with revenue expected to be flat to down 2 percent and EBIT to be in the range of 12.75 to 13.0 percent of sales

Cummins Inc. (NYSE: CMI) today announced restructuring and cost reduction actions to respond to a slowdown in global markets and lowered its outlook for 2015. The Company expects to reduce its professional workforce by up to 2,000 people, with the majority completed by the end of this year. These actions are expected to deliver annualized savings in the range of $160 million to $200 million and the Company will record pre-tax costs of between $70 million and $90 million associated with the workforce reduction in the fourth quarter of 2015. Adjustments to manufacturing capacity are already being made on a facility-by-facility basis and the Company will evaluate if more significant restructuring actions are required in the coming weeks and months.

“We are taking difficult but necessary actions to lower costs in the face of weak demand in many of our markets.” said Tom Linebarger, Chairman and Chief Executive Officer, Cummins Inc. “Global off highway and power generation markets have been weak for some time and are worsening. Industry orders in key end markets in Brazil and China are at multi-year lows and showing no signs of improvement in the near-term. Given the uncertainty in the global economy, we expect challenging conditions to persist for some time. We have a very experienced leadership team at Cummins that knows how to manage effectively through periods of weak demand and ensure that the Company emerges stronger, with higher profitability and stronger leadership positions in our largest markets, as it has in prior cycles.”

Third quarter revenue of $4.6 billion decreased six percent from the same quarter in 2014. Currency negatively impacted sales by four percent compared to last year, primarily due to a stronger U.S. dollar. Weaker demand in global off highway and power generation markets was partially offset by distributor acquisitions in North America.

Revenues in North America increased four percent while international sales declined by 18 percent. Within international markets, lower revenues in Brazil, Europe and China were partially offset by growth in India.

Earnings before interest and taxes (EBIT) decreased in the third quarter to $577 million, or 12.5 percent of sales, down from $684 million or 14.0 percent of sales a year ago.

Net income attributable to Cummins was $380 million ($2.14 per diluted share) in the third quarter, compared to $423 million ($2.32 per diluted share) a year ago. The tax rate in the third quarter of 2015, including discrete items, was 30.1 percent.

Based on the current forecast, Cummins expects full year 2015 revenues to be flat to down two percent, compared to the Company’s prior guidance of growth between two and four percent. EBIT is expected to be in the range of 12.75 to 13.0 percent of sales, excluding costs associated with restructuring and other cost reduction actions, down from the Company’s previous guidance of 13.5 to 14.0 percent.

“We are disappointed with our results in the third quarter, but we are responding quickly to softening demand,” said Rich Freeland, President and Chief Operating Officer. “Through a combination of workforce actions and targeted capacity reduction we will position the Company for stronger financial performance when market conditions improve.”

Other recent highlights:

  • Cummins announced that the company has been named to the 2015 Dow Jones North American Sustainability Index for a 10th consecutive year. The index, part of the global Dow Jones Sustainability Indices, identifies the leading companies for sustainability worldwide.
  • Readers of Consulting-Specifying Engineer (CSE) have voted Cummins Power Generation’s latest QSK95 Series generator as a 2015 Product of the Year winner.
  • Cummins was named as a winner of the Golden Peacock Global Award for Excellence in Corporate Governance for the year 2015.
  • The Company increased its quarterly cash dividend by 25 percent and has returned $1.1 billion to shareholders in the form of dividends and share repurchases throughout the year.

Third quarter 2015 detail (all comparisons to same period in 2014)

Engine Segment

  • Sales - $2.5 billion, down 10 percent.
  • Segment EBIT - $252 million, or 10.0 percent of sales, compared to $330 million or 11.7 percent of sales.
  • Weak demand in global off highway and power generation markets and the Brazilian truck market were partially offset by stronger demand in global bus markets.

Distribution Segment

  • Sales - $1.6 billion, up 20 percent. Acquisitions added 27 percent.
  • Segment EBIT - $123 million, or 7.9 percent of sales, compared to $131 million or 10.1 percent of sales.
  • Higher revenues from acquisitions were partially offset by an 8 percent negative impact from foreign currency movements.

Components Segment

  • Sales - $1.2 billion, down 4 percent.
  • Segment EBIT - $156 million, or 12.6 percent of sales, compared to $172 million or 13.4 percent of sales.
  • Increased sales in on-highway markets in North America and China were more than offset by negative foreign currency movements of 4 percent and lower demand in Brazil.

Power Generation Segment

  • Sales - $659 million, down 13 percent
  • Segment EBIT - $42 million, or 6.4 percent of sales, compared to $60 million, or 8.0 percent of sales.
  • Revenue declined in North America by 11 percent and by 14 percent in international markets. Foreign currency negatively impacted revenue by 3 percent. Lower sales in Europe, China, and Russia, were partially offset by growth in Africa 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 54,600 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 7,200 dealer locations. Cummins earned $1.65 billion on sales of $19.2 billion in 2014. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at www.twittter.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 for the full year of 2015. 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 actions; 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 2014 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
In millions, except per share amounts

September 27,
2015

 

September 28,
2014

NET SALES $ 4,620 $ 4,890
Cost of sales 3,412   3,606
GROSS MARGIN 1,208 1,284
 
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 530 529
Research, development and engineering expenses 197 198
Equity, royalty and interest income from investees 78 99
Other operating (expense) income, net (2 ) 3
OPERATING INCOME 557 659
 
Interest income 9 6
Interest expense 16 15
Other income, net 11   19
INCOME BEFORE INCOME TAXES 561 669
 
Income tax expense 169   230
CONSOLIDATED NET INCOME 392 439
 
Less: Net income attributable to noncontrolling interests 12   16
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 380   $ 423
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 2.15 $ 2.32
Diluted $ 2.14 $ 2.32
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 177.0 182.2
Diluted 177.4 182.7
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.975 $ 0.78
 

(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)
 
Nine months ended
In millions, except per share amounts

September 27,
2015

 

September 28,
2014

NET SALES $ 14,344 $ 14,131
Cost of sales 10,609   10,543  
GROSS MARGIN 3,735 3,588
 
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 1,584 1,527
Research, development and engineering expenses 558 567
Equity, royalty and interest income from investees 240 294
Other operating expense, net (5 ) (4 )
OPERATING INCOME 1,828 1,784
 
Interest income 20 17
Interest expense 47 47
Other income, net 12   68  
INCOME BEFORE INCOME TAXES 1,813 1,822
 
Income tax expense 521   553  
CONSOLIDATED NET INCOME 1,292 1,269
 
Less: Net income attributable to noncontrolling interests 54   62  
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 1,238   $ 1,207  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 6.92 $ 6.59
Diluted $ 6.90 $ 6.58
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 178.9 183.1
Diluted 179.3 183.5
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 2.535 $ 2.03
 
(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

September 27,
2015

December 31,
2014

ASSETS
Current assets
Cash and cash equivalents $ 1,688 $ 2,301
Marketable securities 35   93  
Total cash, cash equivalents and marketable securities 1,723 2,394
Accounts and notes receivable, net 3,159 2,946
Inventories 3,059 2,866
Prepaid expenses and other current assets 921   849  
Total current assets 8,862   9,055  
Long-term assets
Property, plant and equipment 7,262 7,123
Accumulated depreciation (3,545 ) (3,437 )

Property, plant and equipment, net

3,717 3,686
Investments and advances related to equity method investees 959 981
Goodwill 481 479
Other intangible assets, net 337 343
Pension assets 785 637
Other assets 656   595  
Total assets $ 15,797   $ 15,776  
 
LIABILITIES
Current liabilities
Accounts payable (principally trade) $ 1,824 $ 1,881
Loans payable 27 86
Current portion of accrued product warranty 388 363
Accrued compensation, benefits and retirement costs 505 508
Current portion of deferred revenue 414 401
Other accrued expenses 779 759
Current maturities of long-term debt 31   23  
Total current liabilities 3,968   4,021  
Long-term liabilities
Long-term debt 1,595 1,589
Postretirement benefits other than pensions 347 369
Pensions 292 289
Other liabilities and deferred revenue 1,514   1,415  
Total liabilities $ 7,716   $ 7,683  
 
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued $ 2,173 $ 2,139
Retained earnings 10,331 9,545
Treasury stock, at cost, 44.7 and 40.1 shares (3,486 ) (2,844 )
Common stock held by employee benefits trust, at cost, 1.0 and 1.1 shares (11 ) (13 )
Accumulated other comprehensive loss (1,258 ) (1,078 )
Total Cummins Inc. shareholders’ equity 7,749 7,749
Noncontrolling interests 332   344  
Total equity $ 8,081   $ 8,093  
Total liabilities and equity $ 15,797   $ 15,776  
 
(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)
 
Nine months ended
In millions

September 27,
2015

 

September 28,
2014

CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $ 1,292 $ 1,269
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization 383 330
Gain on fair value adjustment for consolidated investees (17 ) (38 )
Deferred income taxes (120 ) (37 )
Equity in income of investees, net of dividends (68 ) (103 )
Pension contributions in excess of expense (119 ) (154 )
Other post-retirement benefits payments in excess of expense (18 ) (22 )
Stock-based compensation expense 24 27
Translation and hedging activities 22 (19 )
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable (163 ) (236 )
Inventories (179 ) (302 )
Other current assets 133 (6 )
Accounts payable (52 ) 316
Accrued expenses (153 ) 162
Changes in other liabilities and deferred revenue 219 184
Other, net (53 ) 17  
Net cash provided by operating activities 1,131   1,388  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (393 ) (409 )
Investments in internal use software (38 ) (40 )
Investments in and advances to equity investees (9 ) (39 )
Acquisitions of businesses, net of cash acquired (102 ) (266 )
Investments in marketable securities—acquisitions (175 ) (213 )
Investments in marketable securities—liquidations 228 316
Cash flows from derivatives not designated as hedges 17
Other, net (5 ) 11  
Net cash used in investing activities (477 ) (640 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 24 39
Payments on borrowings and capital lease obligations (64 ) (72 )
Net payments under short-term credit agreements (38 ) (41 )
Distributions to noncontrolling interests (35 ) (52 )
Dividend payments on common stock (452 ) (370 )
Repurchases of common stock (650 ) (605 )
Other, net   2  
Net cash used in financing activities (1,215 ) (1,099 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (52 ) (20 )
Net decrease in cash and cash equivalents (613 ) (371 )
Cash and cash equivalents at beginning of year 2,301   2,699  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,688   $ 2,328  
 
(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 Distribution Components

Power
Generation

Non-segment
Items (1)

Total
Three months ended September 27, 2015
External sales $ 1,800 $ 1,543 $ 891 $ 386 $ $ 4,620
Intersegment sales 728   8   349   273   (1,358 )  
Total sales 2,528 1,551 1,240 659 (1,358 ) 4,620
Depreciation and amortization(2) 60 26 28 14 128
Research, development and engineering expenses 116 2 65 14 197
Equity, royalty and interest income from investees 40 19 9 10 78
Interest income 6 1 1 1 9
Segment EBIT 252 123

(3)

156 42 4 577
 
Segment EBIT as a percentage of total sales 10.0 % 7.9 % 12.6 % 6.4 % 12.5 %
 
Three months ended September 28, 2014
External sales $ 2,181 $ 1,282 $ 946 $ 481 $ $ 4,890
Intersegment sales 635   10   341   273   (1,259 )  
Total sales 2,816 1,292 1,287 754 (1,259 ) 4,890
Depreciation and amortization(2) 50 22 27 13 112
Research, development and engineering expenses 114 2 64 18 198
Equity, royalty and interest income from investees 40 37 9 13 99
Interest income 3 1 1 1 6
Segment EBIT 330 131

(3)

172 60 (9 ) 684
 
Segment EBIT as a percentage of total sales 11.7 % 10.1 % 13.4 % 8.0 % 14.0 %
                           

(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 September 27, 2015 and September 28, 2014.

(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 Income as "Interest expense."

(3)

 

Distribution segment EBIT included gains of $17 million and $18 million on the fair value adjustments resulting from acquisitions of the controlling interests in North American distributors for the three months ended September 27, 2015 and September 28, 2014, respectively.
 
           
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
 
In millions Engine Distribution Components

Power
Generation

Non-segment Items (1) Total
Nine months ended September 27, 2015
External sales $ 5,747 $ 4,499 $ 2,839 $ 1,259 $ $ 14,344
Intersegment sales 2,174   23   1,097   827   (4,121 )  
Total sales 7,921 4,522 3,936 2,086 (4,121 ) 14,344
Depreciation and amortization(2) 178 78 82 43 381
Research, development and engineering expenses 321 8 183 46 558
Equity, royalty and interest income from investees 127 60 26 27 240
Interest income 11 3 3 3 20
Segment EBIT 846 324 (3) 574 148 (32 ) 1,860
 
Segment EBIT as a percentage of total sales 10.7 % 7.2 % 14.6 % 7.1 % 13.0 %
 
Nine months ended September 28, 2014
External sales $ 6,449 $ 3,453 $ 2,821 $ 1,408 $ $ 14,131
Intersegment sales 1,674   27   976   728   (3,405 )  
Total sales 8,123 3,480 3,797 2,136 (3,405 ) 14,131
Depreciation and amortization(2) 153 58 79 38 328
Research, development and engineering expenses 335 7 170 55 567
Equity, royalty and interest income from investees 117 120 27 30 294
Interest income 9 2 3 3 17
Segment EBIT 910 333 (3) 524 146 (44 ) 1,869
 
Segment EBIT as a percentage of total sales 11.2 % 9.6 % 13.8 % 6.8 % 13.2 %
                           

(1)

 

Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 27, 2015 and September 28, 2014.

(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 Income as "Interest expense." The amortization of debt discount and deferred costs were $2 million for both the nine months ended September 27, 2015 and September 28, 2014.

(3)

 

Distribution segment EBIT included gains of $17 million and $38 million on the fair value adjustments resulting from the acquisitions of the controlling interests in North American distributors for the nine months ended September 27, 2015 and September 28, 2014, respectively.
 

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 Nine months ended
In millions

September 27,
2015

 

September 28,
2014

September 27,
2015

 

September 28,
2014

Total EBIT $ 577 $ 684 $ 1,860 $ 1,869
Less: Interest expense 16   15   47   47
Income before income taxes $ 561   $ 669   $ 1,813   $ 1,822
 
   
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 reporting periods was as follows:

 
Three months ended Nine months ended
In millions

September 27,
2015

 

September 28,
2014

September 27,
2015

 

September 28,
2014

Distribution Entities
North American distributors $ 9 $ 27 $ 27 $ 89
Komatsu Cummins Chile, Ltda. 8 8 23 22
All other distributors 1 2 2
Manufacturing Entities
Beijing Foton Cummins Engine Co., Ltd 18 5 47 6
Dongfeng Cummins Engine Company, Ltd. 11 15 40 51
Chongqing Cummins Engine Company, Ltd. 9 13 32 39
All other manufacturers 13   20   41   54
Cummins share of net income 69 88 212 263
Royalty and interest income 9   11   28   31
Equity, royalty and interest income from investees $ 78   $ 99   $ 240   $ 294
 

NOTE 2. INCOME TAXES

The effective tax rate for the three and nine month periods ended September 27, 2015, was 30.1 percent and 28.7 percent, respectively. The tax rate for the nine month period ended September 27, 2015, included a net $14 million discrete tax benefit primarily to reflect the release of reserves for uncertain tax positions related to a favorable federal audit settlement.

 
NOTE 3. ACQUISITIONS
 

The Distribution segment North American distributor acquisitions in the third quarter of 2015 were as follows:

                 
Entity Acquired  

Date of
Acquisition

 

Additional
Percent
Interest
Acquired

 

Payments
to
Former
Owners

 

Acquisition
Related
Debt
Retirements

 

Total
Purchase
Consideration

 

Type of
Acquisition(1)

 

Gain
Recognized(1)

 

Goodwill
Acquired

 

Intangibles
Recognized(2)

 

Net Sales
Previous
Fiscal Year
Ended(3)

Cummins Crosspoint LLC (4) 08/03/15 50 % $ 20 $ 36 $ 65 (5) COMB $ 10 $ 7 $ 2 $ 258
Cummins Atlantic LLC (4) 08/03/15 51 % 14 28 48 (5) COMB 7 2 6 245
Cummins Central Power LLC 06/29/15 20.01 % 8 8

(5)

EQUITY

____________________________________________________

(1)

  All results from acquired entities were included in Distribution segment results subsequent to the acquisition date. Previously consolidated entities were accounted for as equity transactions (EQUITY). Newly consolidated entities were accounted for as business combinations (COMB) with gains recognized based on the requirement to remeasure our pre-existing ownership to fair value in accordance with GAAP.
(2) Intangible assets acquired in business combinations were mostly customer related, the majority of which will be amortized over a period of up to five years from the date of the acquisition.
(3) Sales amounts are not fully incremental to our consolidated sales as the amount would be reduced by the elimination of sales to the previously unconsolidated entity.
(4) Purchase accounting for this acquisition is preliminary awaiting customary adjustments to purchase price in accordance with the purchase agreements.
(5) The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. In some instances a portion of the acquisition payment has not yet been made and will be paid in future periods in accordance with the purchase contract. The total outstanding consideration at September 27, 2015 for these entities was $15 million.
 
   
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
 
Earnings before interest, income taxes and noncontrolling interests
 

We define EBIT as earnings 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. This measure is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of EBIT to “Net income attributable to Cummins Inc.” for each of the applicable periods:

 
Three months ended Nine months ended
In millions

September 27,
2015

 

September 28,
2014

September 27,
2015

 

September 28,
2014

Earnings before interest expense and income taxes $ 577   $ 684   $ 1,860   $ 1,869  
 
EBIT as a percentage of net sales 12.5 % 14.0 % 13.0 % 13.2 %
 
Less
Interest expense 16 15 47 47
Income tax expense 169   230   521   553  
Consolidated net income 392   439   1,292   1,269  
 
Less
Net income attributable to noncontrolling interests 12   16   54   62  
Net income attributable to Cummins Inc. $ 380   $ 423   $ 1,238   $ 1,207  
 
Net income attributable to Cummins Inc. as a percentage of net sales 8.2 % 8.7 % 8.6 % 8.5 %
 

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

Engine Segment Sales by Market and Unit Shipments by Engine Classification

In the first quarter of 2015, our Engine segment reorganized its reporting structure to include the following markets: heavy-duty truck, medium-duty truck and bus, light-duty automotive (pickup and light commercial vehicle), industrial and stationary power. Sales by market for our Engine segment by business (including 2014 and 2013 reorganized balances) were as follows:

2015          
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 757 $ 875 $ 784 $ $ 2,416
Medium-duty truck and bus 608 674 585 1,867
Light-duty automotive 381 354 339 1,074
Industrial 616 624 617 1,857
Stationary power 234   270   203     707
Total sales $ 2,596   $ 2,797   $ 2,528   $   $ 7,921
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 718 $ 769 $ 801 $ 784 $ 3,072
Medium-duty truck and bus 575 605 599 652 2,431
Light-duty automotive 391 392 396 388 1,567
Industrial 669 739 768 775 2,951
Stationary power 210   239   252   240   941
Total sales $ 2,563   $ 2,744   $ 2,816   $ 2,839   $ 10,962
 
2013
In millions YTD
Heavy-duty truck $ 2,618
Medium-duty truck and bus 2,064
Light-duty automotive 1,465
Industrial 2,921
Stationary power 945  
Total sales $ 10,013  
 

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

         
2015
Units Q1 Q2 Q3 Q4 YTD
Mid-range 112,400 120,000 107,400 339,800
Heavy-duty 28,700 32,800 28,600 90,100
High-horsepower 3,500   3,700   3,200     10,400
Total units 144,600   156,500   139,200     440,300
 
2014
Units Q1 Q2 Q3 Q4 YTD
Mid-range 118,900 118,700 117,700 115,900 471,200
Heavy-duty 28,800 30,300 32,300 30,700 122,100
High-horsepower 3,400   3,900   3,900   3,600   14,800
Total units 151,100   152,900   153,900   150,200   608,100
 
         

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

 

Distribution Segment Sales by Business

 
2015
In millions Q1 Q2 Q3 Q4 YTD
Parts and filtration $ 573 $ 598 $ 604 $ $ 1,775
Engines 321 318 323 962
Power generation 298 272 323 893
Service 284   307   301     892
Total sales $ 1,476   $ 1,495   $ 1,551   $   $ 4,522
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Parts and filtration $ 382 $ 461 $ 491 $ 590 $ 1,924
Engines 174 249 270 368 1,061
Power generation 193 278 279 413 1,163
Service 201   250   252   323   1,026
Total sales $ 950   $ 1,238   $ 1,292   $ 1,694   $ 5,174
 
         

Component Segment Sales by Business

 
2015
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 613 $ 679 $ 607 $ $ 1,899
Turbo technologies 301 307 266 874
Filtration 255 266 240 761
Fuel systems 130   145   127     402
Total sales $ 1,299   $ 1,397   $ 1,240   $   $ 3,936
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Emission solutions $ 543 $ 582 $ 598 $ 620 $ 2,343
Turbo technologies 313 307 297 305 1,222
Filtration 265 275 268 267 1,075
Fuel systems 109   116   124   129   478
Total sales $ 1,230   $ 1,280   $ 1,287   $ 1,321   $ 5,118
 

Power Generation Segment Sales by Business

In the first quarter of 2015, our Power Generation segment reorganized its reporting structure to include the following businesses: power systems, alternators and power solutions. Sales for our Power Generation segment by business (including 2014 and 2013 reorganized balances) were as follows:

2015          
In millions Q1 Q2 Q3 Q4 YTD
Power systems $ 543 $ 611 $ 551 $ $ 1,705
Alternators 98 92 86 276
Power solutions 39   44   22     105
Total sales $ 680   $ 747   $ 659   $   $ 2,086
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Power systems $ 510 $ 586 $ 598 $ 606 $ 2,300
Alternators 105 126 115 103 449
Power solutions 24   31   41   51   147
Total sales $ 639   $ 743   $ 754   $ 760   $ 2,896
 
2013
In millions YTD
Power systems $ 2,381
Alternators 496
Power solutions 154  
Total sales $ 3,031  

Cummins Inc.
Carole Casto, Executive Director - Corporate Communications, 317-610-2480
carole.casto@cummins.com


Source: Business Wire (October 27, 2015 - 7:30 AM EDT)

News by QuoteMedia
www.quotemedia.com