UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 1, 2012
CUMMINS INC.
(Exact name of registrant as
specified in its charter)
Indiana |
1-4949 |
35-0257090 |
500 Jackson Street
P. O. Box 3005
Columbus, IN 47202-3005
(Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (812) 377-5000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ] |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On May 1, 2012, Cummins Inc. (Cummins, the
Company, the registrant, we, our, or, us) issued the attached press
release reporting its financial results for the first quarter of 2012. A
copy of Cummins' press release is attached hereto as Exhibit 99 and hereby
incorporated by reference.
Item 9.01. Financial Statements and Exhibits.
|
(d) |
The following exhibit is furnished pursuant to Item
2.02 herewith: |
99-Press Release dated May 1, 2012
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 1, 2012
CUMMINS INC. |
|
/s/ Marsha L. Hunt Marsha L. Hunt |
|
CUMMINS INC. AND SUBSIDIARIES |
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||
(Unaudited) (a) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|||||||
|
|
|
April 1, |
|
December 31, |
|
March 27, |
|||
In millions, except per share amounts |
|
2012 |
|
2011 |
|
2011 |
||||
NET SALES |
|
$ |
4,472 |
|
$ |
4,921 |
|
$ |
3,860 |
|
|
Cost of sales |
|
|
3,274 |
|
|
3,680 |
|
|
2,903 |
GROSS MARGIN |
|
|
1,198 |
|
|
1,241 |
|
|
957 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES AND INCOME |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
475 |
|
|
496 |
|
|
389 |
|
Research, development and engineering expenses |
|
|
181 |
|
|
179 |
|
|
129 |
|
Equity, royalty and interest income from investees (Note 1) |
|
|
104 |
|
|
101 |
|
|
96 |
|
Gain on sale of business |
|
|
- |
|
|
53 |
|
|
- |
|
Other operating income (expense), net |
|
|
2 |
|
|
25 |
|
|
(6) |
OPERATING INCOME |
|
|
648 |
|
|
745 |
|
|
529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
8 |
|
|
9 |
|
|
6 |
|
Interest expense |
|
|
8 |
|
|
10 |
|
|
10 |
|
Other income (expense), net |
|
|
2 |
|
|
14 |
|
|
(3) |
INCOME BEFORE INCOME TAXES |
|
|
650 |
|
|
758 |
|
|
522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (Note 2) |
|
|
175 |
|
|
186 |
|
|
157 |
CONSOLIDATED NET INCOME |
|
|
475 |
|
|
572 |
|
|
365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
|
20 |
|
|
24 |
|
|
22 |
NET INCOME ATTRIBUTABLE TO CUMMINS INC. |
|
$ |
455 |
|
$ |
548 |
|
$ |
343 |
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE |
|
|
|
|
|
|
|
|
|
|
|
TO CUMMINS INC. |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.39 |
|
$ |
2.87 |
|
$ |
1.75 |
|
Diluted |
|
$ |
2.38 |
|
$ |
2.86 |
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
190.4 |
|
|
190.9 |
|
|
195.5 |
|
Diluted |
|
|
190.8 |
|
|
191.5 |
|
|
196.1 |
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS DECLARED PER COMMON SHARE |
|
$ |
0.40 |
|
$ |
0.40 |
|
$ |
0.2625 |
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).
CUMMINS INC. AND SUBSIDIARIES |
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(Unaudited) (a) |
||||||||||
|
|
|
|
|
|
|
|
|
||
In millions, except par value |
April 1, 2012 |
|
December 31, 2011 |
|||||||
ASSETS |
|
|
|
|
|
|||||
Current assets |
|
|
|
|
|
|||||
|
Cash and cash equivalents |
$ |
1,317 |
|
$ |
1,484 |
||||
|
Marketable securities |
|
252 |
|
|
277 |
||||
|
|
Total cash, cash equivalents and marketable securities |
|
1,569 |
|
|
1,761 |
|||
|
Accounts and notes receivable, net |
|
2,684 |
|
|
2,526 |
||||
|
Inventories |
|
2,382 |
|
|
2,141 |
||||
|
Prepaid expenses and other current assets |
|
682 |
|
|
663 |
||||
|
|
|
Total current assets |
|
7,317 |
|
|
7,091 |
||
Long-term assets |
|
|
|
|
|
|||||
|
Property, plant and equipment |
|
5,416 |
|
|
5,245 |
||||
|
|
Accumulated depreciation |
|
(3,025) |
|
|
(2,957) |
|||
|
|
Property, plant and equipment, net |
|
2,391 |
|
|
2,288 |
|||
|
Investments and advances related to equity method investees |
|
903 |
|
|
838 |
||||
|
Goodwill |
|
342 |
|
|
339 |
||||
|
Other intangible assets, net |
|
250 |
|
|
227 |
||||
|
Other assets |
|
916 |
|
|
885 |
||||
|
|
|
|
Total assets |
$ |
12,119 |
|
$ |
11,668 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|||||
Current liabilities |
|
|
|
|
|
|||||
|
Loans payable |
$ |
33 |
|
$ |
28 |
||||
|
Accounts payable (principally trade) |
|
1,731 |
|
|
1,546 |
||||
|
Current portion of accrued product warranty |
|
418 |
|
|
422 |
||||
|
Accrued compensation, benefits and retirement costs |
|
289 |
|
|
511 |
||||
|
Deferred revenue |
|
211 |
|
|
208 |
||||
|
Taxes payable (including taxes on income) |
|
297 |
|
|
282 |
||||
|
Other accrued expenses |
|
651 |
|
|
660 |
||||
|
|
|
Total current liabilities |
|
3,630 |
|
|
3,657 |
||
Long-term liabilities |
|
|
|
|
|
|||||
|
Long-term debt |
|
650 |
|
|
658 |
||||
|
Pensions |
|
157 |
|
|
205 |
||||
|
Postretirement benefits other than pensions |
|
428 |
|
|
432 |
||||
|
Other liabilities and deferred revenue |
|
896 |
|
|
885 |
||||
|
|
|
|
Total liabilities |
|
5,761 |
|
|
5,837 |
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|||||
Cummins Inc. shareholders equity |
|
|
|
|
|
|||||
|
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.2 shares issued |
|
2,017 |
|
|
2,001 |
||||
|
Retained earnings |
|
6,416 |
|
|
6,038 |
||||
|
Treasury stock, at cost, 30.2 and 30.2 shares |
|
(1,590) |
|
|
(1,587) |
||||
|
Common stock held by employee benefits trust, at cost, 1.7 and 1.8 shares |
|
(20) |
|
|
(22) |
||||
|
Accumulated other comprehensive loss |
|
|
|
|
|
||||
|
|
Defined benefit postretirement plans |
|
(713) |
|
|
(724) |
|||
|
|
Other |
|
(100) |
|
|
(214) |
|||
|
|
Total accumulated other comprehensive loss |
|
(813) |
|
|
(938) |
|||
|
|
|
Total Cummins Inc. shareholders equity |
|
6,010 |
|
|
5,492 |
||
|
Noncontrolling interests |
|
348 |
|
|
339 |
||||
|
|
|
|
Total equity |
|
6,358 |
|
|
5,831 |
|
|
|
|
|
|
Total liabilities and equity |
$ |
12,119 |
|
$ |
11,668 |
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).
CUMMINS INC. AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) (a) |
|||||||
|
|
|
|
|
|
|
|
|
Three months ended |
||||||
In millions |
April 1, 2012 |
|
March 27, 2011 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
||
|
Consolidated net income |
$ |
475 |
|
$ |
365 |
|
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
85 |
|
|
79 |
|
|
Deferred income taxes |
|
(27) |
|
|
21 |
|
|
Equity in income of investees, net of dividends |
|
(59) |
|
|
(62) |
|
|
Pension contributions in excess of expense |
|
(27) |
|
|
(24) |
|
|
Other post-retirement benefits payments in excess of expense |
|
(4) |
|
|
(5) |
|
|
Stock-based compensation expense |
|
7 |
|
|
5 |
|
|
Excess tax benefits on stock-based awards |
|
(11) |
|
|
(2) |
|
|
Translation and hedging activities |
|
10 |
|
|
4 |
|
Changes in current assets and liabilities, net of acquisitions |
|
|
|
|
|
|
|
|
Accounts and notes receivable |
|
(135) |
|
|
(306) |
|
|
Inventories |
|
(209) |
|
|
(210) |
|
|
Other current assets |
|
(28) |
|
|
(2) |
|
|
Accounts payable |
|
148 |
|
|
251 |
|
|
Accrued expenses |
|
(196) |
|
|
(28) |
|
Changes in other liabilities and deferred revenue |
|
29 |
|
|
24 |
|
|
Other, net |
|
(37) |
|
|
(22) |
|
Net cash provided by operating activities |
|
21 |
|
|
88 |
||
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
||
|
Capital expenditures |
|
(126) |
|
|
(91) |
|
|
Investments in internal use software |
|
(16) |
|
|
(10) |
|
|
Investments in and advances to equity investees |
|
(5) |
|
|
(21) |
|
|
Acquisition of businesses, net of cash acquired |
|
(5) |
|
|
- |
|
|
Investments in marketable securitiesacquisitions |
|
(146) |
|
|
(101) |
|
|
Investments in marketable securitiesliquidations |
|
184 |
|
|
134 |
|
|
Cash flows from derivatives not designated as hedges |
|
11 |
|
|
4 |
|
|
Other, net |
|
1 |
|
|
7 |
|
Net cash used in investing activities |
|
(102) |
|
|
(78) |
||
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
||
|
Proceeds from borrowings |
|
12 |
|
|
38 |
|
|
Payments on borrowings and capital lease obligations |
|
(38) |
|
|
(45) |
|
|
Net borrowings (payments) under short-term credit agreements |
|
- |
|
|
1 |
|
|
Distributions to noncontrolling interests |
|
(22) |
|
|
(21) |
|
|
Dividend payments on common stock |
|
(77) |
|
|
(51) |
|
|
Repurchases of common stock |
|
(8) |
|
|
(190) |
|
|
Excess tax benefits on stock-based awards |
|
11 |
|
|
2 |
|
|
Other, net |
|
9 |
|
|
4 |
|
Net cash used in financing activities |
|
(113) |
|
|
(262) |
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
27 |
|
|
8 |
||
Net increase (decrease) in cash and cash equivalents |
|
(167) |
|
|
(244) |
||
Cash and cash equivalents at beginning of year |
|
1,484 |
|
|
1,023 |
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
1,317 |
|
$ |
779 |
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America (GAAP).
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
|
In millions |
Engine |
|
Components |
|
Power Generation |
|
Distribution |
|
Non-segment Items(1) |
Total |
|||||||||||
|
Three months ended April 1, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
External sales |
|
$ |
2,412 |
|
$ |
774 |
|
$ |
516 |
|
$ |
770 |
|
$ |
- |
|
$ |
4,472 |
|||
|
Intersegment sales |
|
447 |
|
325 |
|
264 |
|
5 |
|
(1,041) |
|
|
- |
||||||||
|
|
Total sales |
|
|
2,859 |
|
|
1,099 |
|
|
780 |
|
|
775 |
|
|
(1,041) |
|
|
4,472 |
||
|
Depreciation and amortization(2) |
|
|
47 |
|
|
19 |
|
|
11 |
|
|
7 |
|
|
- |
|
|
84 |
|||
|
Research, development and engineering expenses |
|
|
111 |
|
|
51 |
|
|
18 |
|
|
1 |
|
|
- |
|
|
181 |
|||
|
Equity, royalty and interest income from investees |
|
|
38 |
|
|
8 |
|
|
10 |
|
|
48 |
|
|
- |
|
|
104 |
|||
|
Interest income |
|
|
4 |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
- |
|
|
8 |
|||
|
Segment EBIT |
|
|
381 |
|
|
143 |
|
|
76 |
|
|
94 |
|
|
(36) |
|
|
658 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three months ended December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
External sales |
|
$ |
2,628 |
|
$ |
781 |
|
$ |
682 |
|
$ |
830 |
|
$ |
- |
|
$ |
4,921 |
|||
|
Intersegment sales |
|
433 |
|
|
311 |
|
|
238 |
|
|
4 |
|
|
(986) |
|
|
- |
||||
|
|
Total sales |
|
|
3,061 |
|
|
1,092 |
|
|
920 |
|
|
834 |
|
|
(986) |
|
|
4,921 |
||
|
Depreciation and amortization(2) |
|
|
46 |
|
|
18 |
|
|
10 |
|
|
8 |
|
|
- |
|
|
82 |
|||
|
Research, development and engineering expenses |
|
|
112 |
|
|
49 |
|
|
17 |
|
|
1 |
|
|
- |
|
|
179 |
|||
|
Equity, royalty and interest income from investees |
|
|
40 |
|
|
7 |
|
|
10 |
|
|
44 |
|
|
- |
|
|
101 |
|||
|
Interest income |
|
|
4 |
|
|
2 |
|
|
2 |
|
|
1 |
|
|
- |
|
|
9 |
|||
|
Segment EBIT |
|
|
368 |
|
|
132 |
|
|
87 |
|
|
87 |
|
|
94 |
|
|
768 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three months ended March 27, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
External sales |
|
$ |
2,006 |
|
$ |
660 |
|
$ |
557 |
|
$ |
637 |
|
$ |
- |
|
$ |
3,860 |
|||
|
Intersegment sales |
|
385 |
|
264 |
|
238 |
|
5 |
|
(892) |
|
|
- |
||||||||
|
|
Total sales |
|
|
2,391 |
|
|
924 |
|
|
795 |
|
|
642 |
|
|
(892) |
|
|
3,860 |
||
|
Depreciation and amortization(2) |
|
|
45 |
|
|
18 |
|
|
10 |
|
|
6 |
|
|
- |
|
|
79 |
|||
|
Research, development and engineering expenses |
|
|
80 |
|
|
37 |
|
|
11 |
|
|
1 |
|
|
- |
|
|
129 |
|||
|
Equity, royalty and interest income from investees |
|
|
42 |
|
|
8 |
|
|
8 |
|
|
38 |
|
|
- |
|
|
96 |
|||
|
Interest income |
|
|
3 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
- |
|
|
6 |
|||
|
Segment EBIT |
|
|
290 |
|
|
105 |
|
|
89 |
|
|
89 |
|
|
(41) |
|
|
532 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(1) |
Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three month periods ended April 1, 2012 and March 27, 2011. For the three months ended December 31, 2011, unallocated corporate expenses include a $53 million gain ($33 million after-tax) recorded for the sale of certain assets and liabilities of our light-duty filtration business from our Components segment and a $38 million gain ($24 million after-tax) related to flood damage recoveries from the insurance settlement regarding a June 2008 flood in Southern Indiana. |
|||||||||||||||||||||
(2) |
Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as Interest expense. |
|||||||||||||||||||||
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 |
|
|||||||
|
|
|
April 1, |
|
December 31, |
|
March 27, |
|
|||
In millions |
|
2012 |
|
2011 |
|
2011 |
|
||||
Segment EBIT |
|
$ |
658 |
|
$ |
768 |
|
$ |
532 |
|
|
Less |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
8 |
|
|
10 |
|
|
10 |
|
Income before income taxes |
|
$ |
650 |
|
$ |
758 |
|
$ |
522 |
|
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 interim reporting periods was as follows:
|
|
|
Three months ended |
|
|||||||
|
|
|
April 1, |
|
December 31, |
|
March 27, |
|
|||
In millions |
|
2012 |
|
2011 |
|
2011 |
|
||||
Distribution Entities |
|
|
|
|
|
|
|
|
|
|
|
North American distributors |
|
$ |
40 |
|
$ |
34 |
|
$ |
30 |
|
|
Komatsu Cummins Chile, Ltda. |
|
|
5 |
|
|
6 |
|
|
4 |
|
|
All other distributors |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
Manufacturing Entities |
|
|
|
|
|
|
|
|
|
|
|
Chongqing Cummins Engine Company, Ltd. |
|
|
18 |
|
|
17 |
|
|
12 |
|
|
Dongfeng Cummins Engine Company, Ltd. |
|
|
16 |
|
|
16 |
|
|
23 |
|
|
Cummins Westport, Inc. |
|
|
5 |
|
|
6 |
|
|
1 |
|
|
Tata Cummins, Ltd. |
|
|
4 |
|
|
5 |
|
|
4 |
|
|
Shanghai Fleetguard Filter Co., Ltd. |
|
|
3 |
|
|
3 |
|
|
4 |
|
|
Valvoline Cummins, Ltd. |
|
|
2 |
|
|
1 |
|
|
2 |
|
|
Komatsu manufacturing alliances |
|
|
(1) |
|
|
2 |
|
|
2 |
|
|
Beijing Foton Cummins Engine Co., Ltd. |
|
|
(2) |
|
|
(2) |
|
|
(2) |
|
|
All other manufacturers |
|
|
1 |
|
|
2 |
|
|
6 |
|
|
|
Cummins share of net income |
|
|
92 |
|
|
91 |
|
|
87 |
|
Royalty and interest income |
|
|
12 |
|
|
10 |
|
|
9 |
|
|
|
Equity, royalty and interest income from investees |
|
$ |
104 |
|
$ |
101 |
|
$ |
96 |
|
NOTE 2. INCOME TAXES
Our effective tax rate for the year is expected to approximate 27 percent, absent any discrete period activity. Our tax rate is generally less than the 35 percent U.S. statutory income tax rate primarily due to lower tax rates on foreign income. The tax rate for the three month period ended April 1, 2012, was 27 percent.
Our effective tax rate for the three months ended March 27, 2011, was 30 percent. The decrease in the 2012 effective tax rate compared to 2011 is due primarily to our assertion that income earned after 2011 by our China operations is permanently reinvested, as well as certain tax planning strategies implemented in our U.K. subsidiaries.
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 period presented as it illustrates our operating performance without regard to special items including the gains related to the sale of certain assets and liabilities and flood insurance recovery. This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America 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 quarters ended April 1, 2012, December 31, 2011 and March 27, 2011.
|
|
|
|
|
Three months ended |
||||||||||||||||
|
|
|
|
|
April 1, 2012 |
|
December 31, 2011 |
|
March 27, 2011 |
||||||||||||
In millions |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|||||||||
Net income attributable to Cummins Inc. |
|
$ |
455 |
|
$ |
2.38 |
|
$ |
548 |
|
$ |
2.86 |
|
$ |
343 |
|
$ |
1.75 |
|||
Subtract |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Gain on sale of business (1) |
|
|
- |
|
|
- |
|
|
33 |
|
|
0.17 |
|
|
- |
|
|
- |
||
|
Flood insurance recovery (1) |
|
|
- |
|
|
- |
|
|
24 |
|
|
0.13 |
|
|
- |
|
|
- |
||
Net income attributable to Cummins Inc. excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
special items |
|
$ |
455 |
|
$ |
2.38 |
|
$ |
491 |
|
$ |
2.56 |
|
$ |
343 |
|
$ |
1.75 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The gains have been excluded from operating results as they were not considered in our evaluation of performance for the quarter ended December 31, 2011. |
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Earnings before interest expense, taxes and noncontrolling interests
We define EBIT as earnings or loss 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. Below is a reconciliation of EBIT, a non-GAAP financial measure, to Net income attributable to Cummins Inc., for each of the applicable periods:
|
|
|
|
Three months ended |
|
|||||||
|
|
|
|
April 1, |
|
December 31, |
|
March 27, |
|
|||
In millions |
2012 |
|
2011 |
|
2011 |
|
||||||
Earnings before interest expense, income taxes and |
|
|
|
|
|
|
|
|
|
|||
|
special items |
$ |
658 |
|
$ |
677 |
|
$ |
532 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest expense, income taxes and |
|
|
|
|
|
|
|
|
|
|||
|
special items as a percentage of net sales |
|
14.7% |
|
|
13.8% |
|
|
13.8% |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Add |
|
|
|
|
|
|
|
|
|
|||
|
Gain on sale of business |
|
- |
|
|
53 |
|
|
- |
|
||
|
Flood insurance recovery |
|
- |
|
|
38 |
|
|
- |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest expense and income taxes |
$ |
658 |
|
$ |
768 |
|
$ |
532 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT as a percentage of net sales |
|
14.7% |
|
|
15.6% |
|
|
13.8% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Less |
|
|
|
|
|
|
|
|
|
|||
|
Interest expense |
|
8 |
|
|
10 |
|
|
10 |
|
||
|
Income tax expense |
|
175 |
|
|
186 |
|
|
157 |
|
||
|
|
Consolidated net income |
|
475 |
|
|
572 |
|
|
365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less |
|
|
|
|
|
|
|
|
|
|||
|
Net income attributable to noncontrolling interests |
|
20 |
|
|
24 |
|
|
22 |
|
||
|
|
|
Net income attributable to Cummins Inc. |
$ |
455 |
|
$ |
548 |
|
$ |
343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Cummins Inc. as a |
|
|
|
|
|
|
|
|
|
|||
|
percentage of net sales |
|
10.2% |
|
|
11.1% |
|
|
8.9% |
|
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
Engine segment net sales by market
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Heavy-duty truck |
|
$ |
892 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
892 |
|
Medium-duty truck and bus |
|
|
526 |
|
|
- |
|
|
- |
|
|
- |
|
|
526 |
|
Light-duty automotive and RV |
|
|
286 |
|
|
- |
|
|
- |
|
|
- |
|
|
286 |
|
Industrial |
|
|
861 |
|
|
- |
|
|
- |
|
|
- |
|
|
861 |
|
Stationary power |
|
|
294 |
|
|
- |
|
|
- |
|
|
- |
|
|
294 |
|
|
Total sales |
|
$ |
2,859 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
2,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Heavy-duty truck |
|
$ |
485 |
|
$ |
693 |
|
$ |
748 |
|
$ |
865 |
|
$ |
2,791 |
|
Medium-duty truck and bus |
|
|
474 |
|
|
608 |
|
|
640 |
|
|
598 |
|
|
2,320 |
|
Light-duty automotive and RV |
|
|
296 |
|
|
310 |
|
|
271 |
|
|
299 |
|
|
1,176 |
|
Industrial |
|
|
855 |
|
|
988 |
|
|
977 |
|
|
1,030 |
|
|
3,850 |
|
Stationary power |
|
|
281 |
|
|
301 |
|
|
319 |
|
|
269 |
|
|
1,170 |
|
|
Total sales |
|
$ |
2,391 |
|
$ |
2,900 |
|
$ |
2,955 |
|
$ |
3,061 |
|
$ |
11,307 |
Unit shipments by engine classification (including unit shipments to Power Generation)
2012 |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|
Midrange |
|
109,000 |
|
- |
|
- |
|
- |
|
109,000 |
|
Heavy-duty |
|
36,000 |
|
- |
|
- |
|
- |
|
36,000 |
|
High-horsepower |
|
5,500 |
|
- |
|
- |
|
- |
|
5,500 |
|
|
Total units |
|
150,500 |
|
- |
|
- |
|
- |
|
150,500 |
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|
Midrange |
|
109,400 |
|
131,300 |
|
130,600 |
|
138,100 |
|
509,400 |
|
Heavy-duty |
|
20,000 |
|
29,900 |
|
31,100 |
|
35,300 |
|
116,300 |
|
High-horsepower |
|
4,900 |
|
5,700 |
|
5,600 |
|
5,400 |
|
21,600 |
|
|
Total units |
|
134,300 |
|
166,900 |
|
167,300 |
|
178,800 |
|
647,300 |
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
Component segment sales by business
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Emission solutions |
|
$ |
404 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
404 |
|
Turbo technologies |
|
|
298 |
|
|
- |
|
|
- |
|
|
- |
|
|
298 |
|
Filtration |
|
|
270 |
|
|
- |
|
|
- |
|
|
- |
|
|
270 |
|
Fuel systems |
|
|
127 |
|
|
- |
|
|
- |
|
|
- |
|
|
127 |
|
|
Total sales |
|
$ |
1,099 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
1,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Emission solutions |
|
$ |
273 |
|
$ |
311 |
|
$ |
306 |
|
$ |
372 |
|
$ |
1,262 |
|
Turbo technologies |
|
|
297 |
|
|
314 |
|
|
298 |
|
|
314 |
|
|
1,223 |
|
Filtration |
|
|
255 |
|
|
287 |
|
|
288 |
|
|
283 |
|
|
1,113 |
|
Fuel systems |
|
|
99 |
|
|
120 |
|
|
123 |
|
|
123 |
|
|
465 |
|
|
Total sales |
|
$ |
924 |
|
$ |
1,032 |
|
$ |
1,015 |
|
$ |
1,092 |
|
$ |
4,063 |
In the first quarter of 2012, our Power Generation segment reorganized its reporting structure to include the following businesses: power products, power systems, generator technologies and power solutions. Sales for our Power Generation segment by business (including 2011 and 2010 reorganized balances) were as follows:
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Power products |
|
$ |
375 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
375 |
|
Power systems |
|
|
188 |
|
|
- |
|
|
- |
|
|
- |
|
|
188 |
|
Generator technologies |
|
|
141 |
|
|
- |
|
|
- |
|
|
- |
|
|
141 |
|
Power solutions |
|
|
76 |
|
|
- |
|
|
- |
|
|
- |
|
|
76 |
|
|
Total sales |
|
$ |
780 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Power products |
|
$ |
377 |
|
$ |
415 |
|
$ |
433 |
|
$ |
411 |
|
$ |
1,636 |
|
Power systems |
|
|
189 |
|
|
210 |
|
|
188 |
|
|
228 |
|
|
815 |
|
Generator technologies |
|
|
154 |
|
|
189 |
|
|
166 |
|
|
164 |
|
|
673 |
|
Power solutions |
|
|
75 |
|
|
95 |
|
|
87 |
|
|
117 |
|
|
374 |
|
|
Total sales |
|
$ |
795 |
|
$ |
909 |
|
$ |
874 |
|
$ |
920 |
|
$ |
3,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
YTD |
|
|
|
|
|
|
|
|
||||||
Power products |
|
$ |
1,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Power systems |
|
|
616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Generator technologies |
|
|
550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Power solutions |
|
|
288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales |
|
$ |
2,919 |
|
|
|
|
|
|
|
|
|
|
|
|
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
Distribution segment sales by product
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Parts and filtration |
|
$ |
288 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
288 |
|
Power generation |
|
|
186 |
|
|
- |
|
|
- |
|
|
- |
|
|
186 |
|
Engines |
|
|
166 |
|
|
- |
|
|
- |
|
|
- |
|
|
166 |
|
Service |
|
|
135 |
|
|
- |
|
|
- |
|
|
- |
|
|
135 |
|
|
Total sales |
|
$ |
775 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||
Parts and filtration |
|
$ |
235 |
|
$ |
271 |
|
$ |
283 |
|
$ |
296 |
|
$ |
1,085 |
|
Power generation |
|
|
145 |
|
|
195 |
|
|
191 |
|
|
191 |
|
|
722 |
|
Engines |
|
|
140 |
|
|
186 |
|
|
171 |
|
|
206 |
|
|
703 |
|
Service |
|
|
122 |
|
|
133 |
|
|
138 |
|
|
141 |
|
|
534 |
|
|
Total sales |
|
$ |
642 |
|
$ |
785 |
|
$ |
783 |
|
$ |
834 |
|
$ |
3,044 |