Cummins Inc. (NYSE: CMI) today reported results for the first
quarter of 2015.
First quarter revenue of $4.7 billion increased 7 percent from
the same quarter in 2014. The increase year-over-year was driven by
stronger demand in on-highway markets and distributor acquisitions
in North America. Currency negatively impacted revenues by 3
percent compared to last year, primarily due to a stronger US
dollar.
Revenues in North America increased 17 percent while
international sales declined by 6 percent. Within international
markets, lower revenues in Europe and Brazil more than offset
growth in China.
Earnings before interest and taxes (EBIT) increased to $562
million for the first quarter or 11.9 percent of sales, up from
$528 million or 12.0 percent of sales a year ago.
Net income attributable to Cummins grew 14 percent in the first
quarter to $387 million ($2.14 per diluted share), compared to $338
million ($1.83 per diluted share) in the first quarter of 2014. The
tax rate in the first quarter of 2015, including discrete items,
was 26.3 percent.
"Record profitability in our Components Segment, execution of
our distributor acquisition strategy, the successful launch of new
products in China and improved results in our Power Generation
Business all contributed to earnings growth in the first
quarter. Strong performance in these areas more than offset
the impact of weak demand in a number of international markets."
said Cummins Chairman and CEO Tom Linebarger. "We expect
profitability for the remainder of the year to increase from first
quarter levels as revenues improve and we capture more benefits
from cost reduction activities. During the quarter, we returned
$277 million to shareholders in the form of dividends and share
repurchase, consistent with our plans to return 50 percent of full
year operating cash flow."
Based on the current forecast, Cummins expects full year 2015
revenues to grow between 2 and 4 percent, and EBIT to be in the
range of 13.5 to 14.0 percent of sales.
Other recent highlights:
- For the eighth consecutive year, Cummins was named one of the
world's most ethical companies by The Ethisphere Institute
- Forbes magazine named Cummins 21st in its Top 25 Employers in
America list
- Cummins was selected by Halliburton as the engine supplier for
the first EPA Tier 4 Final-compliant fracking spread in North
America
- The Company repurchased one million shares in the first
quarter
First quarter 2015 detail (all comparisons to same
period in 2014)
Engine Segment
- Sales - $2.6 billion, up 1 percent
- Segment EBIT - $253 million, or 9.7 percent of sales, compared
to $269 million or 10.5 percent of sales
- Increased demand in on-highway markets in North America and
power generation offset weaker demand in construction, marine and
mining markets
Distribution Segment
- Sales - $1.5 billion, up 55 percent overall and down 2 percent
excluding acquisitions
- Segment EBIT - $88 million, or 6.0 percent of sales, compared
to $76 million or 8.0 percent of sales
- Higher revenues were primarily driven by acquisitions and
stronger demand in Asia Pacific, partially offset by the negative
impact of currency movements
- Segment EBIT included $8m of amortization of intangibles
related to prior year acquisitions
Components Segment
- Sales - $1.3 billion, up 6 percent
- Segment EBIT - $195 million, or 15.0 percent of sales, compared
to $167 million or 13.6 percent of sales
- Stronger demand in on-highway markets in North America and
China
Power Generation Segment
- Sales - $680 million, up 6 percent
- Segment EBIT - $49 million, or 7.2 percent of sales,
compared to $25 million or 3.9 percent of sales
- Higher revenues in Asia, Africa and the Middle East more than
offset weaker demand in Eastern Europe
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/cummininc.
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 action; changes in our
customers' business strategies; competitor pricing activity;
expense volatility; labor relations; and other risks detailed from
time to time in our Securities and Exchange Commission filings,
including particularly in the Risk Factors section of our 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 |
|
March 29,
2015 |
|
March 30,
2014 |
NET SALES |
|
|
$4,709 |
|
|
|
$4,406 |
|
Cost of sales |
|
3,514 |
|
|
3,307 |
|
GROSS MARGIN |
|
1,195 |
|
|
1,099 |
|
|
|
|
|
|
OPERATING EXPENSES AND
INCOME |
|
|
|
|
Selling, general and administrative
expenses |
|
517 |
|
|
485 |
|
Research, development and engineering
expenses |
|
195 |
|
|
190 |
|
Equity, royalty and interest income from
investees |
|
68 |
|
|
90 |
|
Other operating income (expense), net |
|
(3) |
|
|
(1) |
|
OPERATING INCOME |
|
548 |
|
|
513 |
|
|
|
|
|
|
Interest income |
|
5 |
|
|
5 |
|
Interest expense |
|
14 |
|
|
17 |
|
Other income, net |
|
9 |
|
|
10 |
|
INCOME BEFORE INCOME
TAXES |
|
548 |
|
|
511 |
|
|
|
|
|
|
Income tax expense |
|
144 |
|
|
153 |
|
CONSOLIDATED NET INCOME |
|
404 |
|
|
358 |
|
|
|
|
|
|
Less: Net income attributable to
noncontrolling interests |
|
17 |
|
|
20 |
|
NET INCOME ATTRIBUTABLE TO CUMMINS
INC. |
|
|
$387 |
|
|
|
$338 |
|
|
|
|
|
|
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO CUMMINS INC. |
|
|
|
|
Basic |
|
|
$2.14 |
|
|
|
$1.83 |
|
Diluted |
|
|
$2.14 |
|
|
|
$1.83 |
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING |
|
|
|
|
Basic |
|
180.6 |
|
|
184.3 |
|
Diluted |
|
181.0 |
|
|
184.7 |
|
|
|
|
|
|
CASH DIVIDENDS DECLARED PER COMMON
SHARE |
|
|
$0.78 |
|
|
|
$0.625 |
|
___________________________________________________________
(a) Prepared on an unaudited basis in accordance with
accounting principles generally accepted in the United States of
America.
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited) (a)
In millions, except par
value |
|
March 29,
2015 |
|
December 31,
2014 |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
|
$1,997 |
|
|
|
$2,301 |
|
Marketable securities |
|
115 |
|
|
93 |
|
Total cash, cash equivalents and marketable
securities |
|
2,112 |
|
|
2,394 |
|
Accounts and notes receivable, net |
|
3,240 |
|
|
2,946 |
|
Inventories |
|
2,936 |
|
|
2,866 |
|
Prepaid expenses and other current
assets |
|
712 |
|
|
849 |
|
Total current assets |
|
9,000 |
|
|
9,055 |
|
Long-term assets |
|
|
|
|
Property, plant and equipment |
|
7,046 |
|
|
7,123 |
|
Accumulated depreciation |
|
(3,409) |
|
|
(3,437) |
|
Property, plant and equipment, net |
|
3,637 |
|
|
3,686 |
|
Investments and advances related to equity
method investees |
|
968 |
|
|
981 |
|
Goodwill |
|
470 |
|
|
479 |
|
Other intangible assets, net |
|
340 |
|
|
343 |
|
Prepaid pensions |
|
714 |
|
|
637 |
|
Other assets |
|
607 |
|
|
595 |
|
Total assets |
|
|
$15,736 |
|
|
|
$15,776 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Loans payable |
|
|
$71 |
|
|
|
$86 |
|
Accounts payable (principally trade) |
|
2,013 |
|
|
1,881 |
|
Current maturities of long-term debt |
|
33 |
|
|
23 |
|
Current portion of accrued product
warranty |
|
379 |
|
|
363 |
|
Accrued compensation, benefits and retirement
costs |
|
390 |
|
|
508 |
|
Deferred revenue |
|
393 |
|
|
401 |
|
Other accrued expenses |
|
778 |
|
|
759 |
|
Total current liabilities |
|
4,057 |
|
|
4,021 |
|
Long-term liabilities |
|
|
|
|
Long-term debt |
|
1,602 |
|
|
1,589 |
|
Pensions |
|
290 |
|
|
289 |
|
Postretirement benefits other than
pensions |
|
359 |
|
|
369 |
|
Other liabilities and deferred revenue |
|
1,359 |
|
|
1,415 |
|
Total liabilities |
|
|
$7,667 |
|
|
|
$7,683 |
|
|
|
|
|
|
EQUITY |
|
|
|
|
Cummins Inc. shareholders' equity |
|
|
|
|
Common stock, $2.50 par value, 500 shares
authorized, 222.3 and 222.3 shares issued |
|
|
$2,146 |
|
|
|
$2,139 |
|
Retained earnings |
|
9,792 |
|
|
9,545 |
|
Treasury stock, at cost, 41.0 and 40.1
shares |
|
(2,975) |
|
|
(2,844) |
|
Common stock held by employee benefits trust,
at cost, 1.0 and 1.1 shares |
|
(12) |
|
|
(13) |
|
Accumulated other comprehensive loss |
|
(1,245) |
|
|
(1,078) |
|
Total Cummins Inc. shareholders' equity |
|
7,706 |
|
|
7,749 |
|
Noncontrolling interests |
|
363 |
|
|
344 |
|
Total equity |
|
|
$8,069 |
|
|
|
$8,093 |
|
Total liabilities and equity |
|
|
$15,736 |
|
|
|
$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)
|
|
Three months
ended |
In millions |
|
March 29,
2015 |
|
March 30,
2014 |
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
Consolidated net income |
|
|
$404 |
|
|
|
$358 |
|
Adjustments to reconcile consolidated net
income to net cash provided by operating activities |
|
|
|
|
Depreciation and amortization |
|
128 |
|
|
105 |
|
Deferred income taxes |
|
(1) |
|
|
22 |
|
Equity in income of investees, net of
dividends |
|
(53) |
|
|
(52) |
|
Pension contributions in excess of
expense |
|
(96) |
|
|
(100) |
|
Other post-retirement benefits payments in
excess of expense |
|
(8) |
|
|
(8) |
|
Stock-based compensation expense |
|
5 |
|
|
10 |
|
Translation and hedging activities |
|
7 |
|
|
(3) |
|
Changes in current assets and liabilities,
net of acquisitions |
|
|
|
|
Accounts and notes receivable |
|
(276) |
|
|
(232) |
|
Inventories |
|
(98) |
|
|
(135) |
|
Other current assets |
|
20 |
|
|
2 |
|
Accounts payable |
|
147 |
|
|
302 |
|
Accrued expenses |
|
(35) |
|
|
(95) |
|
Changes in other liabilities and deferred
revenue |
|
59 |
|
|
50 |
|
Other, net |
|
(30) |
|
|
39 |
|
Net cash provided by operating
activities |
|
173 |
|
|
263 |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
Capital expenditures |
|
(100) |
|
|
(107) |
|
Investments in internal use software |
|
(8) |
|
|
(14) |
|
Investments in and advances to equity
investees |
|
10 |
|
|
(6) |
|
Acquisitions of businesses, net of cash
acquired |
|
(11) |
|
|
(90) |
|
Investments in marketable
securities--acquisitions |
|
(95) |
|
|
(84) |
|
Investments in marketable
securities--liquidations |
|
71 |
|
|
108 |
|
Cash flows from derivatives not designated as
hedges |
|
4 |
|
|
5 |
|
Other, net |
|
4 |
|
|
1 |
|
Net cash used in investing activities |
|
(125) |
|
|
(187) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
Proceeds from borrowings |
|
2 |
|
|
7 |
|
Payments on borrowings and capital lease
obligations |
|
(18) |
|
|
(25) |
|
Distributions to noncontrolling
interests |
|
(1) |
|
|
(13) |
|
Dividend payments on common stock |
|
(140) |
|
|
(115) |
|
Repurchases of common stock |
|
(137) |
|
|
(419) |
|
Other, net |
|
(2) |
|
|
(37) |
|
Net cash used in financing activities |
|
(296) |
|
|
(602) |
|
EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS |
|
(56) |
|
|
5 |
|
Net decrease in cash and cash
equivalents |
|
(304) |
|
|
(521) |
|
Cash and cash equivalents at beginning of
year |
|
2,301 |
|
|
2,699 |
|
CASH AND CASH EQUIVALENTS AT END OF
PERIOD |
|
|
$1,997 |
|
|
|
2,178 |
|
___________________________________________________________
(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 March 29,
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales |
|
|
$1,889 |
|
|
|
$1,469 |
|
|
|
$931 |
|
|
|
$420 |
|
|
|
$-- |
|
|
|
$4,709 |
|
|
Intersegment sales |
|
707 |
|
|
7 |
|
|
368 |
|
|
260 |
|
|
(1,342) |
|
|
-- |
|
|
Total sales |
|
2,596 |
|
|
1,476 |
|
|
1,299 |
|
|
680 |
|
|
(1,342) |
|
|
4,709 |
|
|
Depreciation and amortization(2) |
|
58 |
|
|
27 |
|
|
26 |
|
|
16 |
|
|
-- |
|
|
127 |
|
|
Research, development and engineering
expenses |
|
114 |
|
|
3 |
|
|
61 |
|
|
17 |
|
|
-- |
|
|
195 |
|
|
Equity, royalty and interest income from
investees |
|
30 |
|
|
20 |
|
|
9 |
|
|
9 |
|
|
-- |
|
|
68 |
|
|
Interest income |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
-- |
|
|
5 |
|
|
Segment EBIT |
|
253 |
|
|
88 |
|
|
195 |
|
|
49 |
|
|
(23) |
|
|
562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT as a percentage of total
sales |
|
9.7% |
|
|
6.0% |
|
|
15.0% |
|
|
7.2% |
|
|
|
|
11.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 30,
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales |
|
|
$2,090 |
|
|
|
$942 |
|
|
|
$922 |
|
|
|
$452 |
|
|
|
$-- |
|
|
|
$4,406 |
|
|
Intersegment sales |
|
473 |
|
|
8 |
|
|
308 |
|
|
187 |
|
|
(976) |
|
|
-- |
|
|
Total sales |
|
2,563 |
|
|
950 |
|
|
1,230 |
|
|
639 |
|
|
(976) |
|
|
4,406 |
|
|
Depreciation and amortization(2) |
|
51 |
|
|
16 |
|
|
26 |
|
|
12 |
|
|
-- |
|
|
105 |
|
|
Research, development and engineering
expenses |
|
116 |
|
|
2 |
|
|
53 |
|
|
19 |
|
|
-- |
|
|
190 |
|
|
Equity, royalty and interest income from
investees |
|
32 |
|
|
41 |
|
|
9 |
|
|
8 |
|
|
-- |
|
|
90 |
|
|
Interest income |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
-- |
|
|
5 |
|
|
Segment EBIT |
|
269 |
|
|
76 |
|
(3) |
167 |
|
|
25 |
|
|
(9) |
|
|
528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT as a percentage of total
sales |
|
10.5% |
|
|
8.0% |
|
|
13.6% |
|
|
3.9% |
|
|
|
|
12.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes intersegment sales and
profit in inventory eliminations and unallocated corporate
expenses. There were no significant unallocated corporate expenses
for the three months ended March 29, 2015 and March 30, 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 $1 million and less than a
million for the three months ended March 29, 2015 and March 30,
2014, respectively. |
(3) |
|
Distribution segment EBIT
included a gain of $6 million on the fair value adjustment
resulting from the acquisition of a controlling interest in a North
American distributor for the three months ended March 30,
2014. |
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 |
In millions |
|
March 29,
2015 |
|
March 30,
2014 |
Total EBIT |
|
|
$562 |
|
|
|
$528 |
|
Less: Interest expense |
|
14 |
|
|
17 |
|
Income before income taxes |
|
|
$548 |
|
|
|
$511 |
|
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 |
In millions |
|
March 29,
2015 |
|
March 30,
2014 |
Distribution Entities |
|
|
|
|
North American distributors |
|
|
$10 |
|
|
|
$32 |
|
Komatsu Cummins Chile, Ltda. |
|
7 |
|
|
6 |
|
All other distributors |
|
1 |
|
|
1 |
|
Manufacturing Entities |
|
|
|
|
Dongfeng Cummins Engine
Company, Ltd. |
|
14 |
|
|
14 |
|
Chongqing Cummins Engine
Company, Ltd. |
|
12 |
|
|
11 |
|
Beijing Foton Cummins Engine Co., Ltd.
(Light-duty) |
|
8 |
|
|
6 |
|
Beijing Foton Cummins Engine Co., Ltd.
(Heavy-duty) |
|
(1) |
|
|
(6) |
|
All other manufacturers |
|
7 |
|
|
15 |
|
Cummins share of net income |
|
58 |
|
|
79 |
|
Royalty and interest income |
|
10 |
|
|
11 |
|
Equity, royalty and interest income from
investees |
|
|
$68 |
|
|
|
$90 |
|
NOTE 2. INCOME TAXES
The effective tax rate for the three month period ended
March 29, 2015, was 26.3 percent. This tax rate included an
$18 million discrete tax benefit 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 this is a useful measure of our operating performance
for the periods presented as it illustrates our operating
performance without regard to special items including tax
adjustments. This measure is 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 |
|
|
|
March 29,
2015 |
|
March 30,
2014 |
In millions |
|
Net
Income |
|
Diluted
EPS |
|
Net
Income |
|
Diluted
EPS |
Net income attributable to
Cummins Inc. |
|
|
$387 |
|
|
|
$2.14 |
|
|
|
$338 |
|
|
|
$1.83 |
|
Less |
|
|
|
|
|
|
|
|
Tax benefit |
|
18 |
|
|
0.10 |
|
|
-- |
|
|
-- |
|
Net income attributable to
Cummins Inc. excluding special items |
|
|
$369 |
|
|
|
$2.04 |
|
|
|
$338 |
|
|
|
$1.83 |
|
CUMMINS INC. AND
SUBSIDIARIES
FINANCIAL
MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Earnings before interest, 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 |
In millions |
|
March 29,
2015 |
|
March 30,
2014 |
Earnings before interest expense and income
taxes |
|
|
$562 |
|
|
|
$528 |
|
|
|
|
|
|
EBIT as a percentage of net sales |
|
11.9% |
|
|
12.0% |
|
|
|
|
|
|
Less |
|
|
|
|
Interest expense |
|
14 |
|
|
17 |
|
Income tax expense |
|
144 |
|
|
153 |
|
Consolidated net income |
|
404 |
|
|
358 |
|
|
|
|
|
|
Less |
|
|
|
|
Net income attributable to noncontrolling
interests |
|
17 |
|
|
20 |
|
Net income attributable to Cummins Inc. |
|
|
$387 |
|
|
|
$338 |
|
|
|
|
|
|
Net income attributable to Cummins Inc. as a
percentage of net sales |
|
8.2% |
|
|
7.7% |
|
CUMMINS INC. AND
SUBSIDIARIES
BUSINESS
UNIT SALES DATA
(Unaudited)
Engine Segment Net Sales by Market
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 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$757 |
|
Medium-duty truck and bus |
|
608 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
608 |
|
Light-duty automotive |
|
381 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
381 |
|
Industrial |
|
616 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
616 |
|
Stationary power |
|
234 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
234 |
|
Total sales |
|
|
$2,596 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$2,596 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Midrange |
|
112,400 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
112,400 |
|
Heavy-duty |
|
28,700 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
28,700 |
|
High-horsepower |
|
3,500 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
3,500 |
|
Total units |
|
144,600 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
144,600 |
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
Midrange |
|
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 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$573 |
|
Engines |
|
321 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
321 |
|
Power generation |
|
298 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
298 |
|
Service |
|
284 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
284 |
|
Total sales |
|
|
$1,476 |
|
|
|
$-- |
|
|
|
$-- |
|
|
$ |
$-- |
|
|
|
$1,476 |
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
Parts and filtration |
|
|
$382 |
|
|
|
$461 |
|
|
|
$4491 |
|
|
|
$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 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$613 |
|
Turbo technologies |
|
301 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
301 |
|
Filtration |
|
255 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
255 |
|
Fuel systems |
|
130 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
130 |
|
Total sales |
|
|
$1,299 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$1,299 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$543 |
|
Alternators |
|
98 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
98 |
|
Power solutions |
|
39 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
39 |
|
Total sales |
|
|
$680 |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$-- |
|
|
|
$680 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
CONTACT: Carole Casto
Executive Director - Corporate Communications
(317) 610-2480
carole.casto@cummins.com
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