Cummins Announces Financial Results for the Fourth Quarter and Full Year 2015
Shares Expectations Regarding 2016 Revenue and Earnings
-
Fourth quarter 2015 revenues of $4.8 billion, EBIT of 11.1 percent
of sales excluding restructuring and impairment charges
-
Full Year 2015 revenues of $19.1 billion and EBIT of 12.5 percent,
excluding restructuring and impairment charges
-
The company expects revenues to decline between 5 and 9 percent in
2016 and EBIT to be in the range of 11.6 to 12.2 percent of sales
Cummins Inc. (NYSE: CMI) today reported results for the fourth quarter
and full year of 2015.
Fourth quarter revenues of $4.8 billion decreased 6 percent from the
same quarter in 2014, with the impact of currency, primarily a stronger
US dollar, negatively impacting sales by 4 percent.
Revenues in North America declined 2 percent while international sales
declined by 12 percent. Within international markets, sales in Latin
America declined the most.
Earnings before interest and taxes (EBIT) in the fourth quarter of 2015
were $531 million, or 11.1 percent of sales, excluding charges for
impairments of $211 million and restructuring of $90 million. This
compares to $661 million or 13.0 percent of sales a year ago, excluding
$32 million of expense related to cost reduction activities in the Power
Generation segment in 2014.
“As a result of weakening market conditions in the fourth quarter of
2015, the Company reviewed its global manufacturing footprint and now
expects to scale back the range of light duty engines it plans to
manufacture in North America,” said Rich Freeland, President and Chief
Operating Officer. “This change in plans, combined with the uncertainty
of winning additional customers for the V8 light duty engine, caused the
Company to reassess the book value of its light duty manufacturing
assets in North America. As a result, a non-cash, pre-tax impairment
charge of $211 million was recorded to adjust the assets to fair value.
We are disappointed that we had to record the charge, but we remain
committed to our light duty engine customers and are confident in the
growth potential of our global light duty engine business, including the
V8 engine in North America.”
The Company incurred a pre-tax charge for restructuring of $90 million
associated with a reduction in professional employees, and also recorded
a loss contingency of $60 million in the fourth quarter of 2015.
Net income attributable to Cummins was $161 million ($0.92 per diluted
share), or $355 million ($2.02 per diluted share) excluding impairment
and restructuring charges in the fourth quarter of 2015. This compares
to $465 million ($2.56 per diluted share) in 2014 excluding one-time
items. The tax rate in the fourth quarter of 2015, including discrete
items, was 16.0 percent.
Revenues for the full year 2015 were $19.1 billion, 1 percent lower than
2014. Revenues in North America increased 7 percent, but international
sales declined 11 percent due to lower sales in Latin America, Europe
and Asia Pacific.
EBIT for the year was $2.09 billion or 10.9 percent of sales. Excluding
impairments and restructuring, EBIT was $2.39 billion or 12.5 percent of
sales. This compares to $2.53 billion or 13.2 percent of sales in 2014,
excluding one-time items.
Net income attributable to Cummins for the full year 2015 was $1.4
billion ($7.84 per diluted share) in 2015, or $1.59 billion ($8.93 per
diluted share) excluding impairment and restructuring charges, down from
$1.67 billion ($9.13 per diluted share) in 2014, excluding one-time
items. The full year tax rate was 27.4 percent in 2015.
“We made significant progress in a number of our key initiatives in
2015, including gaining market share with our new products in China,
successfully acquiring and integrating our North American distributors,
improving the quality of our products and reducing material costs,” said
Chairman and CEO Tom Linebarger. “However a combination of weak end
markets and a stronger U.S. dollar presented significant challenges to
our performance. As demand weakened in the third quarter we moved
quickly to lower costs. Through a combination of restructuring and other
staffing actions, we reduced headcount by more than 2,000 people in the
fourth quarter, and launched a number of initiatives within our
manufacturing operations to reduce costs.”
“The benefits of restructuring, material cost reduction initiatives and
quality improvements combined with the launch of new and improved
products in 2016, should position the Company for stronger performance
in the future, despite the challenges of a weak macroeconomic
environment. We plan to return 75 percent of operating cash flow to
shareholders in the form of dividends and share repurchase in 2016,
building on our actions in 2015 when we returned a record $1.5 billion
to shareholders,” concluded Linebarger.
Based on its current forecast, Cummins expects full year 2016 revenues
to decline between 5 and 9 percent and EBIT to be in the range of 11.6
to 12.2 percent of sales.
2015 highlights:
-
The Company increased its dividend by 25 percent and repurchased 7.2
million shares
-
For the eighth consecutive year, Cummins was named one of the world’s
most ethical companies by the Ethisphere Institute
-
Diversity Inc named Cummins as one of the Top 50 companies for
diversity for the seventh consecutive year
-
The Company was named as a winner of the Golden Peacock Award for
Excellence in Corporate Governance
-
Cummins was named to the 2015 Dow Jones North American Sustainability
Index for the tenth consecutive year
Fourth quarter 2015 detail (all comparisons to same period in 2014)
excluding restructuring and impairment charges in 2015 and excluding
one-time items in 2014.
Engine Segment
-
Sales - $2.5 billion, down 11 percent
-
Segment EBIT - $189 million, or 7.5 percent of sales, compared to $315
million or 11.1 percent of sales
-
Segment EBIT reflects a $60 million charge for a loss contingency
-
Weak demand in global industrial markets and a decline in heavy duty
truck production in North America were partially offset by strong
demand in North American medium-duty truck and bus markets
Distribution Segment
-
Sales - $1.7 billion, up 1 percent
-
Segment EBIT - $111 million, or 6.5 percent of sales, compared to $158
million or 9.3 percent of sales
-
Increased revenues from acquisitions were partially offset by a 6
percent negative impact from currency and a 2 percent decline in
organic sales
Components Segment
-
Sales - $1.2 billion, down 6 percent
-
Segment EBIT - $175 million , or 14.2 percent of sales, compared to
$160 million or 12.1 percent of sales
-
Reduced sales in on-highway markets in North America and Brazil along
with a negative foreign currency impact of 4 percent, were partially
offset by increased revenue from China
Power Generation Segment
-
Sales - $654 million, down 14 percent
-
Segment EBIT - $27 million, or 4.1 percent of sales, compared to $54
million, or 7.1 percent of sales
-
Revenue declined in North America by 12 percent and by 15 percent in
international markets. Currency movements negatively impacting revenue
by 3 percent. Growth in India and Europe, was more than offset by
declines in all other regions.
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 55,000 people worldwide
and serves customers in approximately 190 countries and territories
through a network of approximately 600 company-owned and independent
distributor locations and more than 7,200 dealer locations. Cummins
earned $1.4 billion on sales of $19.1 billion in 2015. Press releases
can be found on the Web at www.cummins.com.
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 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
|
|
|
December 31,
|
|
December 31,
|
In millions, except per share amounts
|
|
2015
|
|
2014
|
NET SALES
|
|
$
|
4,766
|
|
|
$
|
5,090
|
|
Cost of sales
|
|
3,554
|
|
|
3,817
|
|
GROSS MARGIN
|
|
1,212
|
|
|
1,273
|
|
|
|
|
|
|
OPERATING EXPENSES AND INCOME
|
|
|
|
|
Selling, general and administrative expenses
|
|
508
|
|
|
568
|
|
Research, development and engineering expenses
|
|
177
|
|
|
187
|
|
Equity, royalty and interest income from investees
|
|
75
|
|
|
76
|
|
Impairment of light-duty diesel assets
|
|
211
|
|
|
—
|
|
Restructuring actions and other charges
|
|
90
|
|
|
—
|
|
Other operating expense, net
|
|
(72
|
)
|
|
(13
|
)
|
OPERATING INCOME
|
|
229
|
|
|
581
|
|
|
|
|
|
|
Interest income
|
|
4
|
|
|
6
|
|
Interest expense
|
|
18
|
|
|
17
|
|
Other (expense) income, net
|
|
(3
|
)
|
|
42
|
|
INCOME BEFORE INCOME TAXES
|
|
212
|
|
|
612
|
|
|
|
|
|
|
Income tax expense
|
|
34
|
|
|
145
|
|
CONSOLIDATED NET INCOME
|
|
178
|
|
|
467
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
17
|
|
|
23
|
|
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
|
|
$
|
161
|
|
|
$
|
444
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
|
|
|
|
|
Basic
|
|
$
|
0.92
|
|
|
$
|
2.45
|
|
Diluted
|
|
$
|
0.92
|
|
|
$
|
2.44
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
Basic
|
|
175.5
|
|
|
181.4
|
|
Diluted
|
|
175.8
|
|
|
181.9
|
|
|
|
|
|
|
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)
|
|
|
|
Years ended December 31,
|
In millions, except per share amounts
|
|
2015
|
|
2014
|
NET SALES
|
|
$
|
19,110
|
|
|
$
|
19,221
|
|
Cost of sales
|
|
14,163
|
|
|
14,360
|
|
GROSS MARGIN
|
|
4,947
|
|
|
4,861
|
|
|
|
|
|
|
OPERATING EXPENSES AND INCOME
|
|
|
|
|
Selling, general and administrative expenses
|
|
2,092
|
|
|
2,095
|
|
Research, development and engineering expenses
|
|
735
|
|
|
754
|
|
Equity, royalty and interest income from investees
|
|
315
|
|
|
370
|
|
Impairment of light-duty diesel assets
|
|
211
|
|
|
—
|
|
Restructuring actions and other charges
|
|
90
|
|
|
—
|
|
Other operating expense, net
|
|
(77
|
)
|
|
(17
|
)
|
OPERATING INCOME
|
|
2,057
|
|
|
2,365
|
|
|
|
|
|
|
Interest income
|
|
24
|
|
|
23
|
|
Interest expense
|
|
65
|
|
|
64
|
|
Other income, net
|
|
9
|
|
|
110
|
|
INCOME BEFORE INCOME TAXES
|
|
2,025
|
|
|
2,434
|
|
|
|
|
|
|
Income tax expense
|
|
555
|
|
|
698
|
|
CONSOLIDATED NET INCOME
|
|
1,470
|
|
|
1,736
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
71
|
|
|
85
|
|
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
|
|
$
|
1,399
|
|
|
$
|
1,651
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
|
|
|
|
|
Basic
|
|
$
|
7.86
|
|
|
$
|
9.04
|
|
Diluted
|
|
$
|
7.84
|
|
|
$
|
9.02
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
Basic
|
|
178.0
|
|
|
182.7
|
|
Diluted
|
|
178.4
|
|
|
183.1
|
|
|
|
|
|
|
CASH DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
3.51
|
|
|
$
|
2.81
|
|
|
|
|
|
|
(a) Prepared on an unaudited basis in accordance with
accounting principles generally accepted in the United States of
America.
|
|
|
|
|
|
|
CUMMINS INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited) (a)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
In millions, except par value
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,711
|
|
|
$
|
2,301
|
|
Marketable securities
|
|
100
|
|
|
93
|
|
Total cash, cash equivalents and marketable securities
|
|
1,811
|
|
|
2,394
|
|
Accounts and notes receivable, net
|
|
2,820
|
|
|
2,946
|
|
Inventories
|
|
2,707
|
|
|
2,866
|
|
Prepaid expenses and other current assets
|
|
609
|
|
|
849
|
|
Total current assets
|
|
7,947
|
|
|
9,055
|
|
Long-term assets
|
|
|
|
|
Property, plant and equipment, net
|
|
3,745
|
|
|
3,686
|
|
Investments and advances related to equity method investees
|
|
975
|
|
|
981
|
|
Goodwill and other intangible assets, net
|
|
810
|
|
|
822
|
|
Other assets
|
|
1,657
|
|
|
1,220
|
|
Total assets
|
|
$
|
15,134
|
|
|
$
|
15,764
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable (principally trade)
|
|
$
|
1,706
|
|
|
$
|
1,881
|
|
Loans payable
|
|
24
|
|
|
86
|
|
Accrued expenses
|
|
2,073
|
|
|
2,054
|
|
Total current liabilities
|
|
3,803
|
|
|
4,021
|
|
Long-term liabilities
|
|
|
|
|
Long-term debt
|
|
1,576
|
|
|
1,577
|
|
Other liabilities
|
|
2,005
|
|
|
2,073
|
|
Total liabilities
|
|
$
|
7,384
|
|
|
$
|
7,671
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Cummins Inc. shareholders’ equity
|
|
|
|
|
Common stock, $2.50 par value, 500 shares authorized, 222.4 and
222.3 shares issued
|
|
$
|
2,178
|
|
|
$
|
2,139
|
|
Retained earnings
|
|
10,322
|
|
|
9,545
|
|
Treasury stock, at cost, 47.2 and 40.1 shares
|
|
(3,735
|
)
|
|
(2,844
|
)
|
Common stock held by employee benefits trust, at cost, 0.9 and 1.1
shares
|
|
(11
|
)
|
|
(13
|
)
|
Accumulated other comprehensive loss
|
|
(1,348
|
)
|
|
(1,078
|
)
|
Total Cummins Inc. shareholders’ equity
|
|
7,406
|
|
|
7,749
|
|
Noncontrolling interests
|
|
344
|
|
|
344
|
|
Total equity
|
|
$
|
7,750
|
|
|
$
|
8,093
|
|
Total liabilities and equity
|
|
$
|
15,134
|
|
|
$
|
15,764
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
Years ended December 31,
|
In millions
|
|
2015
|
|
2014
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
$
|
2,059
|
|
|
$
|
2,266
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Capital expenditures
|
|
(744
|
)
|
|
(743
|
)
|
Investments in internal use software
|
|
(55
|
)
|
|
(55
|
)
|
Investments in and advances to equity investees
|
|
(7
|
)
|
|
(60
|
)
|
Acquisitions of businesses, net of cash acquired
|
|
(117
|
)
|
|
(436
|
)
|
Investments in marketable securities—acquisitions
|
|
(282
|
)
|
|
(275
|
)
|
Investments in marketable securities—liquidations
|
|
270
|
|
|
336
|
|
Cash flows from derivatives not designated as hedges
|
|
8
|
|
|
(14
|
)
|
Other, net
|
|
9
|
|
|
13
|
|
Net cash used in investing activities
|
|
(918
|
)
|
|
(1,234
|
)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from borrowings
|
|
44
|
|
|
55
|
|
Payments on borrowings and capital lease obligations
|
|
(76
|
)
|
|
(94
|
)
|
Net payments under short-term credit agreements
|
|
(41
|
)
|
|
(40
|
)
|
Distributions to noncontrolling interests
|
|
(49
|
)
|
|
(83
|
)
|
Dividend payments on common stock
|
|
(622
|
)
|
|
(512
|
)
|
Repurchases of common stock
|
|
(900
|
)
|
|
(670
|
)
|
Other, net
|
|
—
|
|
|
1
|
|
Net cash used in financing activities
|
|
(1,644
|
)
|
|
(1,343
|
)
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(87
|
)
|
|
(87
|
)
|
Net decrease in cash and cash equivalents
|
|
(590
|
)
|
|
(398
|
)
|
Cash and cash equivalents at beginning of year
|
|
2,301
|
|
|
2,699
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
1,711
|
|
|
$
|
2,301
|
|
|
|
|
|
|
(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 December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
1,793
|
|
|
$
|
1,699
|
|
|
$
|
906
|
|
|
$
|
368
|
|
|
$
|
—
|
|
|
$
|
4,766
|
|
Intersegment sales
|
|
735
|
|
|
8
|
|
|
330
|
|
|
286
|
|
|
(1,359
|
)
|
|
—
|
|
Total sales
|
|
2,528
|
|
|
1,707
|
|
|
1,236
|
|
|
654
|
|
|
(1,359
|
)
|
|
4,766
|
|
Depreciation and amortization(2)
|
|
61
|
|
|
27
|
|
|
27
|
|
|
15
|
|
|
—
|
|
|
130
|
|
Research, development and engineering expenses
|
|
107
|
|
|
2
|
|
|
53
|
|
|
15
|
|
|
—
|
|
|
177
|
|
Equity, royalty and interest income from investees
|
|
44
|
|
|
18
|
|
|
9
|
|
|
4
|
|
|
—
|
|
|
75
|
|
Interest income
|
|
2
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT (excluding impairment of light-duty diesel assets and
restructuring actions and other charges)
|
|
$
|
189
|
|
(5)
|
$
|
111
|
|
(6)
|
$
|
175
|
|
|
$
|
27
|
|
|
$
|
29
|
|
|
$
|
531
|
|
Impairment of light-duty diesel assets(3)
|
|
202
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
211
|
|
Restructuring actions and other charges(4)
|
|
26
|
|
|
23
|
|
|
13
|
|
|
19
|
|
|
9
|
|
|
90
|
|
Segment EBIT
|
|
$
|
(39
|
)
|
(5)
|
$
|
88
|
|
(6)
|
$
|
153
|
|
|
$
|
8
|
|
|
$
|
20
|
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT (excluding impairment of light-duty diesel assets and
restructuring actions and other charges) as a percentage of total
sales
|
|
7.5
|
%
|
|
6.5
|
%
|
|
14.2
|
%
|
|
4.1
|
%
|
|
|
|
11.1
|
%
|
Segment EBIT as a percentage of total sales
|
|
(1.5
|
)%
|
|
5.2
|
%
|
|
12.4
|
%
|
|
1.2
|
%
|
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
1,988
|
|
|
$
|
1,682
|
|
|
$
|
970
|
|
|
$
|
450
|
|
|
$
|
—
|
|
|
$
|
5,090
|
|
Intersegment sales
|
|
851
|
|
|
12
|
|
|
351
|
|
|
310
|
|
|
(1,524
|
)
|
|
—
|
|
Total sales
|
|
2,839
|
|
|
1,694
|
|
|
1,321
|
|
|
760
|
|
|
(1,524
|
)
|
|
5,090
|
|
Depreciation and amortization(2)
|
|
54
|
|
|
28
|
|
|
27
|
|
|
15
|
|
|
—
|
|
|
124
|
|
Research, development and engineering expenses
|
|
103
|
|
|
2
|
|
|
60
|
|
|
22
|
|
|
—
|
|
|
187
|
|
Equity, royalty and interest income from investees
|
|
30
|
|
|
28
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
76
|
|
Interest income
|
|
3
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
Segment EBIT
|
|
315
|
|
|
158
|
|
(6)
|
160
|
|
|
22
|
|
(7)
|
(26
|
)
|
|
629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT as a percentage of total sales
|
|
11.1
|
%
|
|
9.3
|
%
|
|
12.1
|
%
|
|
2.9
|
%
|
|
|
|
12.4
|
%
|
(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 December 31, 2015 and December 31, 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)
|
|
See Note 2, "IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS," for additional
information.
|
(4)
|
|
See Note 3, "RESTRUCTURING ACTIONS AND OTHER CHARGES," for
additional information.
|
(5)
|
|
Engine segment EBIT included an accrual for a loss contingency of
$60 million. See Note 4, "LOSS CONTINGENCY," for additional
information.
|
(6)
|
|
Distribution segment EBIT included gains of $1 million and $35
million on the fair value adjustments resulting from the acquisition
of the controlling interests in North American distributors for the
three months ended December 31, 2015 and December 31, 2014,
respectively.
|
(7)
|
|
Power Generation segment EBIT for the three months ended December
31, 2014, included actions taken to reduce its future cost
structure. Costs associated with these actions were $32 million and
are primarily related to the closure of a plant in Germany.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CUMMINS INC. AND SUBSIDIARIES
|
SEGMENT INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions
|
|
Engine
|
|
Distribution
|
|
Components
|
|
Power Generation
|
|
Non-segment Items (1)
|
|
Total
|
Year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
7,540
|
|
|
$
|
6,198
|
|
|
$
|
3,745
|
|
|
$
|
1,627
|
|
|
$
|
—
|
|
|
$
|
19,110
|
|
Intersegment sales
|
|
2,909
|
|
|
31
|
|
|
1,427
|
|
|
1,113
|
|
|
(5,480
|
)
|
|
—
|
|
Total sales
|
|
10,449
|
|
|
6,229
|
|
|
5,172
|
|
|
2,740
|
|
|
(5,480
|
)
|
|
19,110
|
|
Depreciation and amortization(2)
|
|
239
|
|
|
105
|
|
|
109
|
|
|
58
|
|
|
—
|
|
|
511
|
|
Research, development and engineering expenses
|
|
428
|
|
|
10
|
|
|
236
|
|
|
61
|
|
|
—
|
|
|
735
|
|
Equity, royalty and interest income from investees
|
|
171
|
|
|
78
|
|
|
35
|
|
|
31
|
|
|
—
|
|
|
315
|
|
Interest income
|
|
13
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT (excluding impairment of light-duty diesel assets and
restructuring actions and other charges)
|
|
$
|
1,035
|
|
(5)
|
$
|
435
|
|
(6)
|
$
|
749
|
|
|
$
|
175
|
|
|
$
|
(3
|
)
|
|
$
|
2,391
|
|
Impairment of light-duty diesel assets(3)
|
|
202
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
211
|
|
Restructuring actions and other charges(4)
|
|
26
|
|
|
23
|
|
|
13
|
|
|
19
|
|
|
9
|
|
|
90
|
|
Segment EBIT
|
|
$
|
807
|
|
(5)
|
$
|
412
|
|
(6)
|
$
|
727
|
|
|
$
|
156
|
|
|
$
|
(12
|
)
|
|
$
|
2,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT (excluding impairment of light-duty diesel assets and
restructuring actions and other charges) as a percentage of total
sales
|
|
9.9
|
%
|
|
7.0
|
%
|
|
14.5
|
%
|
|
6.4
|
%
|
|
|
|
12.5
|
%
|
Segment EBIT as a percentage of total sales
|
|
7.7
|
%
|
|
6.6
|
%
|
|
14.1
|
%
|
|
5.7
|
%
|
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
8,437
|
|
|
$
|
5,135
|
|
|
$
|
3,791
|
|
|
$
|
1,858
|
|
|
$
|
—
|
|
|
$
|
19,221
|
|
Intersegment sales
|
|
2,525
|
|
|
39
|
|
|
1,327
|
|
|
1,038
|
|
|
(4,929
|
)
|
|
—
|
|
Total sales
|
|
10,962
|
|
|
5,174
|
|
|
5,118
|
|
|
2,896
|
|
|
(4,929
|
)
|
|
19,221
|
|
Depreciation and amortization(2)
|
|
207
|
|
|
86
|
|
|
106
|
|
|
53
|
|
|
—
|
|
|
452
|
|
Research, development and engineering expenses
|
|
438
|
|
|
9
|
|
|
230
|
|
|
77
|
|
|
—
|
|
|
754
|
|
Equity, royalty and interest income from investees
|
|
147
|
|
|
148
|
|
|
36
|
|
|
39
|
|
|
—
|
|
|
370
|
|
Interest income
|
|
12
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
23
|
|
Segment EBIT
|
|
1,225
|
|
|
491
|
|
(6)
|
684
|
|
|
168
|
|
(7)
|
(70
|
)
|
|
2,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT as a percentage of total sales
|
|
11.2
|
%
|
|
9.5
|
%
|
|
13.4
|
%
|
|
5.8
|
%
|
|
|
|
13.0
|
%
|
(1)
|
|
Includes intersegment sales, intersegment profit in inventory
eliminations and unallocated corporate expenses. There were no
significant unallocated corporate expenses for the years ended
December 31, 2015 and December 31, 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 $3 million and
$3 million for the years ended December 31, 2015 and 2014,
respectively.
|
(3)
|
|
See Note 2, "IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS," for additional
information.
|
(4)
|
|
See Note 3, "RESTRUCTURING ACTIONS AND OTHER CHARGES," for
additional information.
|
(5)
|
|
Engine segment EBIT included an accrual for a loss contingency of
$60 million. See Note 4, "LOSS CONTINGENCY," for additional
information.
|
(6)
|
|
Distribution segment EBIT included gains of $18 million and $73
million on the fair value adjustments resulting from the acquisition
of the controlling interests in North American distributors for the
years ended December 31, 2015 and December 31, 2014, respectively.
|
(7)
|
|
Power Generation segment EBIT for the year ended December 31, 2014,
included actions taken to reduce its future cost structure. Costs
associated with these actions were $32 million and are primarily
related to the closure of a plant in Germany.
|
|
|
|
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 Income is shown in
the table below:
|
|
Three months ended
|
|
Years ended
|
In millions
|
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2015
|
|
December 31, 2014
|
Total segment EBIT
|
|
$
|
230
|
|
|
$
|
629
|
|
|
$
|
2,090
|
|
|
$
|
2,498
|
Less: Interest expense
|
|
18
|
|
|
17
|
|
|
65
|
|
|
64
|
Income before income taxes
|
|
$
|
212
|
|
|
$
|
612
|
|
|
$
|
2,025
|
|
|
$
|
2,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Years ended
|
In millions
|
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2015
|
|
December 31, 2014
|
Distribution Entities
|
|
|
|
|
|
|
|
|
North American distributors
|
|
$
|
6
|
|
|
$
|
18
|
|
|
$
|
33
|
|
|
$
|
107
|
|
Komatsu Cummins Chile, Ltda.
|
|
8
|
|
|
7
|
|
|
31
|
|
|
29
|
|
All other distributors
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
Manufacturing Entities
|
|
|
|
|
|
|
|
|
Beijing Foton Cummins Engine Co., Ltd.
|
|
15
|
|
|
(8
|
)
|
|
62
|
|
|
(2
|
)
|
Dongfeng Cummins Engine Company, Ltd.
|
|
11
|
|
|
16
|
|
|
51
|
|
|
67
|
|
Chongqing Cummins Engine Company, Ltd.
|
|
9
|
|
|
12
|
|
|
41
|
|
|
51
|
|
All other manufacturers
|
|
11
|
|
|
20
|
|
|
52
|
|
|
74
|
|
Cummins share of net income
|
|
61
|
|
|
67
|
|
|
273
|
|
|
330
|
|
Royalty and interest income
|
|
14
|
|
|
9
|
|
|
42
|
|
|
40
|
|
Equity, royalty and interest income from investees
|
|
$
|
75
|
|
|
$
|
76
|
|
|
$
|
315
|
|
|
$
|
370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE 2. IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS
We began development of a new North American light-duty diesel engine
(LDD) platform in July of 2006 for use in a variety of on- and
off-highway applications. Since that time, and as of December 31, 2015,
we capitalized investments of approximately $279 million, with a net
book value prior to the impairment of $246 million ($235 million of
which is in our Engine segment and $11 million of which is in our
Components segment). Market uncertainty due to the global recession in
2008/2009 resulted in some customers delaying or canceling their vehicle
programs, while others remained active. We announced an agreement with
Nissan Motor Co. Ltd. in 2013 to supply our light-duty diesel engine and
began commercial shipment in 2015. In the fourth quarter of 2015, we
learned that we were not successful in our bid to supply this product
for an additional customer. In addition, the recent deterioration in
global economic conditions and excess manufacturing capacity in other
markets make it unlikely that we will manufacture additional products on
the LDD line to utilize its excess capacity during the asset recovery
period. As a result, we concluded that the combination of these events
presented a triggering event requiring an assessment of the
recoverability of these assets in the fourth quarter of 2015. The
assessment indicated that the projected undiscounted cash flows related
to this asset group were not sufficient to recover its carrying value.
Consequently, we were required to write down the LDD asset group to fair
value. Our fourth quarter results included an impairment charge of $211
million ($133 million after-tax), of which $202 million is in the Engine
segment and $9 million is in the Components segment, to reflect the
assets at fair value. We remain committed to servicing existing
contracts and are not exiting this product line.
NOTE 3. RESTRUCTURING ACTIONS AND OTHER CHARGES
In the fourth quarter of 2015, we announced and executed restructuring
actions primarily in the form of voluntary and involuntary employee
separation programs in response to the continued deterioration in our
global markets in the second half of 2015, as well as expected
reductions in orders in most U.S. and global markets in 2016. We reduced
our worldwide professional workforce by approximately 1,900 employees,
or 5 percent, including approximately 370 employees accepting voluntary
retirement packages with the remainder of the reductions being
involuntary. We incurred a charge of $90 million ($61 million after-tax)
in the fourth quarter of 2015, which included $86 million for the
severance costs related to both voluntary and involuntary terminations
and $4 million for asset impairments and other charges.
Employee termination and severance costs were recorded based on approved
plans developed by the businesses and corporate management which
specified positions to be eliminated, benefits to be paid under existing
severance plans or statutory requirements and the expected timetable for
completion of the plan. Estimates of restructuring costs and benefits
were made based on information available at the time charges were
recorded. Due to the inherent uncertainty involved, actual amounts paid
for such activities may differ from amounts initially recorded and we
may need to revise previous estimates.
NOTE 4. LOSS CONTINGENCY
Engines systems sold in the United States must be certified to comply
with the Environmental Protection Agency (EPA) and California Air
Resources Board (CARB) emission standards. EPA and CARB regulations
require that in-use testing be performed on vehicles by the emission
certificate holder and reported to the EPA and CARB in order to ensure
ongoing compliance with these emission standards. We are the holder of
this emission certificate for our engines, including engines installed
in certain vehicles with one customer on which we did not also
manufacture or sell the emission after treatment system. During 2015, a
wash coat quality issue in certain of these third party after treatment
systems caused some of our inter-related engines to fail in-use emission
testing. In the fourth quarter, the vehicle manufacturer made a request
that we assist in the design and bear the financial cost of a field
campaign (Campaign) to address the technical issue purportedly causing
some vehicles to fail the in-use testing.
While we are not responsible for the warranty issues related to a
component that we did not manufacture or sell, as the emission
compliance certificate holder, we are responsible for proposing a remedy
to the EPA and CARB. As a result, we have proposed actions to the
agencies that we believe will address the emission failures. As the
certificate holder, we expect to participate in the cost of the proposed
voluntary Campaign and have recorded a charge for this Campaign in other
operating expenses of $60 million ($38 million after tax) in the
fourth quarter. We are pursuing a cost sharing arrangement with the
vehicle manufacturer which could reduce the economic cost of this
Campaign. We will record a cost recovery in the period when a binding
agreement is obtained.
We currently do not expect any fines or penalties from the EPA or CARB
related to this matter.
NOTE 5. INCOME TAXES
Our income tax rates are generally less than the 35 percent U.S. income
tax rate primarily because of lower taxes on foreign earnings and
research tax credits. The effective tax rate for the three and twelve
month periods ended December 31, 2015, was 16.0 percent and 27.4
percent, respectively. The effective tax rate for the three month period
ended December 31, 2015 included U.S. tax legislation that was passed in
the fourth quarter extending the federal research tax credit
permanently. We recorded a $25 million benefit in the fourth quarter
related to this legislation.
In addition to the fourth quarter item, the tax rate for the twelve
month period ended December 31, 2015, included an $18 million one-time
tax benefit primarily to reflect the release of reserves for uncertain
tax positions related to a favorable federal audit settlement.
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 these are useful measures of our operating performance for
the periods presented as they illustrate our operating performance
without regard to special items including tax adjustments. These
measures are not in accordance with, or an alternative for, accounting
principles generally accepted in the United States of America (GAAP) and
may not be consistent with measures used by other companies. It should
be considered supplemental data. The following table reconciles net
income attributable to Cummins Inc. to net income attributable to
Cummins Inc. excluding special items for the following periods:
|
|
Three months ended
|
|
|
December 31, 2015
|
|
December 31, 2014
|
In millions
|
|
Net Income
|
|
Diluted EPS
|
|
Net Income
|
|
Diluted EPS
|
Net income attributable to Cummins Inc.
|
|
$
|
161
|
|
|
$
|
0.92
|
|
|
$
|
444
|
|
|
$
|
2.44
|
Add
|
|
|
|
|
|
|
|
|
Impairment of light-duty diesel assets (1)
|
|
133
|
|
|
0.75
|
|
|
—
|
|
|
—
|
Restructuring actions and other charges (1)
|
|
61
|
|
|
0.35
|
|
|
21
|
|
(2)
|
0.12
|
Loss contingency (1)
|
|
38
|
|
|
0.22
|
|
|
—
|
|
|
—
|
Less
|
|
|
|
|
|
|
|
|
Federal research tax credit
|
|
25
|
|
|
0.15
|
|
|
—
|
|
|
—
|
Net income attributable to Cummins Inc. excluding special items
|
|
$
|
368
|
|
|
$
|
2.09
|
|
|
$
|
465
|
|
|
$
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
|
|
|
December 31, 2015
|
|
December 31, 2014
|
In millions
|
|
Net Income
|
|
Diluted EPS
|
|
Net Income
|
|
Diluted EPS
|
Net income attributable to Cummins Inc.
|
|
$
|
1,399
|
|
|
$
|
7.84
|
|
|
$
|
1,651
|
|
|
$
|
9.02
|
Add
|
|
|
|
|
|
|
|
|
Impairment of light-duty diesel assets (1)
|
|
133
|
|
|
0.75
|
|
|
—
|
|
|
—
|
Restructuring actions and other charges (1)
|
|
61
|
|
|
0.34
|
|
|
21
|
|
(2)
|
0.11
|
Loss contingency (1)
|
|
38
|
|
|
0.21
|
|
|
—
|
|
|
—
|
Net income attributable to Cummins Inc. excluding special items
|
|
$
|
1,631
|
|
|
$
|
9.14
|
|
|
$
|
1,672
|
|
|
$
|
9.13
|
(1)
|
|
See the respective previous footnotes for additional information.
|
(2)
|
|
In the fourth quarter of 2014, we recorded a plant closing and
initiated other actions totaling $32 million ($21 million after tax).
|
|
|
|
Earnings before interest, income taxes, noncontrolling interests and
special items
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
|
|
Years ended
|
In millions
|
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2015
|
|
December 31, 2014
|
Earnings before interest expense, income taxes and special items
|
|
$
|
591
|
|
|
$
|
661
|
|
|
$
|
2,451
|
|
|
$
|
2,530
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest expense, income taxes and special items
as a percentage of net sales
|
|
12.4
|
%
|
|
13.0
|
%
|
|
12.8
|
%
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
Less
|
|
|
|
|
|
|
|
|
Impairment of light-duty diesel assets
|
|
211
|
|
|
—
|
|
|
211
|
|
|
—
|
|
Restructuring actions and other charges
|
|
90
|
|
|
—
|
|
|
90
|
|
|
—
|
|
Loss contingency
|
|
60
|
|
|
—
|
|
|
60
|
|
|
—
|
|
Plant closing and other actions
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
Earnings before interest expense and income taxes
|
|
$
|
230
|
|
|
$
|
629
|
|
|
$
|
2,090
|
|
|
$
|
2,498
|
|
|
|
|
|
|
|
|
|
|
EBIT as a percentage of net sales
|
|
4.8
|
%
|
|
12.4
|
%
|
|
10.9
|
%
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
Less
|
|
|
|
|
|
|
|
|
Interest expense
|
|
18
|
|
|
17
|
|
|
65
|
|
|
64
|
|
Income tax expense
|
|
34
|
|
|
145
|
|
|
555
|
|
|
698
|
|
Consolidated net income
|
|
178
|
|
|
467
|
|
|
1,470
|
|
|
1,736
|
|
|
|
|
|
|
|
|
|
|
Less
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
17
|
|
|
23
|
|
|
71
|
|
|
85
|
|
Net income attributable to Cummins Inc.
|
|
$
|
161
|
|
|
$
|
444
|
|
|
$
|
1,399
|
|
|
$
|
1,651
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Cummins Inc. as a percentage of net
sales
|
|
3.4
|
%
|
|
8.7
|
%
|
|
7.3
|
%
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
700
|
|
|
$
|
3,116
|
Medium-duty truck and bus
|
|
608
|
|
|
674
|
|
|
585
|
|
|
640
|
|
|
2,507
|
Light-duty automotive
|
|
381
|
|
|
354
|
|
|
339
|
|
|
401
|
|
|
1,475
|
Industrial
|
|
616
|
|
|
624
|
|
|
617
|
|
|
601
|
|
|
2,458
|
Stationary power
|
|
234
|
|
|
270
|
|
|
203
|
|
|
186
|
|
|
893
|
Total sales
|
|
$
|
2,596
|
|
|
$
|
2,797
|
|
|
$
|
2,528
|
|
|
$
|
2,528
|
|
|
$
|
10,449
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
116,600
|
|
|
456,400
|
Heavy-duty
|
|
28,700
|
|
|
32,800
|
|
|
28,600
|
|
|
24,300
|
|
|
114,400
|
High-horsepower
|
|
3,500
|
|
|
3,700
|
|
|
3,200
|
|
|
3,400
|
|
|
13,800
|
Total units
|
|
144,600
|
|
|
156,500
|
|
|
139,200
|
|
|
144,300
|
|
|
584,600
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Segment Sales by Business
2015
|
|
|
|
|
|
|
|
|
|
|
In millions
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
Parts and filtration
|
|
$
|
573
|
|
|
$
|
598
|
|
|
$
|
604
|
|
|
$
|
648
|
|
|
$
|
2,423
|
Engines
|
|
321
|
|
|
318
|
|
|
323
|
|
|
332
|
|
|
1,294
|
Power generation
|
|
298
|
|
|
272
|
|
|
323
|
|
|
397
|
|
|
1,290
|
Service
|
|
284
|
|
|
307
|
|
|
301
|
|
|
330
|
|
|
1,222
|
Total sales
|
|
$
|
1,476
|
|
|
$
|
1,495
|
|
|
$
|
1,551
|
|
|
$
|
1,707
|
|
|
$
|
6,229
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
600
|
|
|
$
|
2,499
|
Turbo technologies
|
|
301
|
|
|
307
|
|
|
266
|
|
|
267
|
|
|
1,141
|
Filtration
|
|
255
|
|
|
266
|
|
|
240
|
|
|
249
|
|
|
1,010
|
Fuel systems
|
|
130
|
|
|
145
|
|
|
127
|
|
|
120
|
|
|
522
|
Total sales
|
|
$
|
1,299
|
|
|
$
|
1,397
|
|
|
$
|
1,240
|
|
|
$
|
1,236
|
|
|
$
|
5,172
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
533
|
|
|
$
|
2,238
|
Alternators
|
|
98
|
|
|
92
|
|
|
86
|
|
|
82
|
|
|
358
|
Power solutions
|
|
39
|
|
|
44
|
|
|
22
|
|
|
39
|
|
|
144
|
Total sales
|
|
$
|
680
|
|
|
$
|
747
|
|
|
$
|
659
|
|
|
$
|
654
|
|
|
$
|
2,740
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160204005374/en/ Copyright Business Wire 2016
Source: Business Wire
(February 4, 2016 - 7:30 AM EST)
News by QuoteMedia
www.quotemedia.com
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