Cummins Announces Third Quarter Results

  • Third quarter revenues of $5.8 billion; GAAP1 Net Income of $622 million
  • Third quarter EBITDA of 16.6 percent of sales; Diluted EPS of $3.97
  • Full year 2019 revenues expected to decline 2 percent, lower than previous guidance of flat
  • Full year EBITDA expected to be 15.9 to 16.3 percent of sales, compared to prior guidance of 16.25 to 16.75 percent
  • $910 million returned to shareholders during the third quarter in the form of dividends and share repurchases.

COLUMBUS, Ind.–(BUSINESS WIRE)–Cummins Inc. (NYSE: CMI) today reported results for the third quarter of 2019.

Third quarter revenues of $5.8 billion decreased 3 percent from the same quarter in 2018. Lower demand for trucks and construction equipment drove the majority of the decline. Sales in North America were flat while international revenues decreased 8 percent. Currency negatively impacted revenues by 1 percent, primarily due to a stronger US dollar.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $958 million, or 16.6 percent of sales, compared to $983 million or 16.5 percent of sales a year ago.

Net income attributable to Cummins in the third quarter was $622 million ($3.97 per diluted share), compared to net income of $692 million ($4.28 per diluted share) last year. Third quarter results were positively impacted by $23 million ($0.14 per diluted share) in discrete tax items and gains of $28 million ($0.18 per diluted share) from closing out certain derivative contracts associated with the company’s foreign exchange hedging program. Third quarter net income included expenses of $35 million ($0.23 per diluted share) related to one-time actions taken to cease development and production of certain products, which will benefit future financial performance.

“Despite weakening conditions in a number of our largest markets, Cummins delivered strong profits, record operating cash flow, and returned a record $910 million of cash to shareholders in the third quarter,” said Chairman and CEO Tom Linebarger. “While we expected to see a moderation of demand in the second half of the year, sales have weakened even faster than we anticipated. Cummins is taking actions to align our cost structure with the lower revenues while maintaining investment in products that will deliver sustainable growth and profitability.”

2019 Outlook:

Based on the current forecast, Cummins now expects 2019 revenue to decline 2 percent compared to prior guidance of flat. The reduction in our revenue forecast is driven by lower truck production in North America, India, Brazil, and Europe, as well as lower demand in off-highway markets, including North America construction and global mining markets. The company now expects EBITDA to be in the range of 15.9 to 16.3 percent of sales. This projection for EBITDA is lower than the prior guidance of 16.25 to 16.75 percent, due to the impact of lower volumes and the acquisition of Hydrogenics.

The company plans to return 75 percent of Operating Cash Flow to shareholders in the form of dividends and share repurchases.

Our outlook does not include any potential impact of the company’s review of its emission certification process and compliance with emissions standards or expenses associated with executing future cost reduction initiatives.

Third Quarter 2019 Highlights:

  • The Company’s new 2020 X15 Efficiency Series engine will meet 2021 greenhouse gas standards one year early in North America, delivering up to 5% better fuel economy than the prior X15 Efficiency Series. The X15 Efficiency Series is paired with a 12-speed Cummins Eaton Joint Venture Automated Manual Transmission and delivers both improved fuel economy and reliability for customers, while lowering greenhouse gas emissions.
  • Cummins closed on its previously announced acquisition of fuel cell and hydrogen production technologies provider Hydrogenics Corporation. The acquisition was completed for $15.00 per share, representing an enterprise value of $291 million.
  • The first Cummins-powered battery electric bus entered service in Santa Monica, California.
  • Cummins was named to the Dow Jones Sustainability North American Index for a 14th consecutive year. The index is considered one of the most prestigious sustainability rankings.
  • The company returned a record $910 million to shareholders in the form of dividend and share repurchases in the third quarter. We repurchased 4.6 million shares during the quarter, representing 2.9% of shares outstanding.
  • Cummins and Freightliner announced the increased availability of the Cummins X12 engine. The X12 will be available in a Freightliner Cascadia day cab in 2020. This is the first time the X12 will be utilized in regional haul applications in North America. The X12 combined with the Cummins Eaton Joint Venture transmission delivers substantial value to weight sensitive customers as it is the lightest powertrain available for the Class 8 on-highway market, weighing only 2700 pounds.

1 Generally Accepted Accounting Principles

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

Engine Segment

  • Sales – $2.4 billion, down 11 percent
  • Segment EBITDA – $341 million, or 14.1 percent of sales, compared to $405 million or 14.9 percent of sales
  • The company recorded a $33 million charge related to the decision to cease production of its 5-liter ISV engine for the US pickup market by the end of this year
  • On-highway revenues decreased 9 percent and off-highway revenues decreased by 20 percent
  • North America revenues decreased by 6 percent due to lower demand in heavy-duty truck and construction markets while international revenues declined 25 percent primarily due to lower demand in China

Distribution Segment

  • Sales – $2.0 billion, up 4 percent
  • Segment EBITDA – $186 million, or 9.3 percent of sales, compared to $155 million or 8.0 percent of sales
  • Revenues in North America increased by 3 percent and international sales were up 5 percent
  • Strong demand for power generation equipment in North America, especially data centers, was partially offset by lower demand in oil and gas markets and the unfavorable impact from a stronger US dollar, which impacted sales by 1 percent

Components Segment

  • Sales – $1.7 billion, down 6 percent
  • Segment EBITDA – $286 million, or 17.3 percent of sales, compared to $288 million or 16.4 percent of sales
  • Revenues in North America increased by 2 percent while international sales declined by 18 percent due to lower demand in Europe, India, and China

Power Systems Segment

  • Sales – $1.1 billion, up 2 percent
  • Segment EBITDA – $158 million, or 14.0 percent of sales, compared to $163 million or 14.7 percent of sales
  • Industrial revenues increased 3 percent while power generation revenues grew 2 percent

Electrified Power Segment

  • Sales – $9 million
  • Segment EBITDA loss – $36 million

About Cummins

Cummins Inc., a global technology leader, is a corporation of complementary business segments designing, manufacturing, distributing and servicing a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including transmissions, battery systems, fuel systems, controls, air handling, filtration, emission solutions, electrical power generation systems, hydrogen generation, energy storage and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 62,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations, and over 7,600 dealer locations. In 2018, the company earned about $2.1 billion on sales of $23.8 billion. See how Cummins is powering a world that’s Always On by accessing news releases and more information at https://www.cummins.com/always-on. Follow Cummins on Twitter at www.twitter.com/cummins and on YouTube at www.youtube.com/cumminsinc.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA percentage for the full year of 2019. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse results of our internal review into our emissions certification process and compliance with emissions standards; a sustained slowdown or significant downturn in our markets; changes in the engine outsourcing practices of significant customers; the development of new technologies that reduce demand for our current products and services; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emissions standards around the world; product recalls; policy changes in international trade; the United Kingdom’s (U.K.) decision to end its membership in the European Union; lower than expected acceptance of new or existing products or services; a slowdown in infrastructure development and/or depressed commodity prices; supply shortages and supplier financial risk, particularly from any of our single-sourced suppliers; exposure to potential security breaches or other disruptions to our information technology systems and data security; a major customer experiencing financial distress; the actions of, and income from, joint ventures and other investees that we do not directly control; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; failure to realize expected results from our investment in Eaton Cummins Automated Transmission Technologies joint venture; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; foreign currency exchange rate changes; variability in material and commodity costs; political, economic and other risks from operations in numerous countries; changes in taxation; global legal and ethical compliance costs and risks; aligning our capacity and production with our demand; product liability claims; increasingly stringent environmental laws and regulations; future bans or limitations on the use of diesel-powered products; the price and availability of energy; the performance of our pension plan assets and volatility of discount rates; labor relations; changes in accounting standards; our sales mix of products; protection and validity of our patent and other intellectual property rights; the outcome of pending and future litigation and governmental proceedings; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2018 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release, and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release. Cummins presents this information as it believes it is useful to understanding the Company’s operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

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 NET INCOME

(Unaudited) (a)

 

 

 

Three months ended

In millions, except per share amounts

 

September 29,

2019

 

September 30,

2018

NET SALES

 

$

5,768

 

 

$

5,943

 

Cost of sales

 

4,274

 

 

4,392

 

GROSS MARGIN

 

1,494

 

 

1,551

 

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

600

 

 

604

 

Research, development and engineering expenses

 

242

 

 

229

 

Equity, royalty and interest income from investees

 

68

 

 

90

 

Other operating income (expense), net

 

(21

)

 

(5

)

OPERATING INCOME

 

699

 

 

803

 

Interest income

 

14

 

 

9

 

Interest expense

 

26

 

 

30

 

Other income, net

 

68

 

 

23

 

INCOME BEFORE INCOME TAXES

 

755

 

 

805

 

Income tax expense

 

139

 

 

107

 

CONSOLIDATED NET INCOME

 

616

 

 

698

 

Less: Net income (loss) attributable to noncontrolling interests

 

(6

)

 

6

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

622

 

 

$

692

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

3.99

 

 

$

4.29

 

Diluted

 

$

3.97

 

 

$

4.28

 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

155.9

 

 

161.3

 

Diluted

 

156.6

 

 

161.8

 

(a)

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

 

Nine months ended

In millions, except per share amounts

 

September 29,

2019

 

September 30,

2018

NET SALES

 

$

17,993

 

 

$

17,645

 

Cost of sales

 

13,326

 

 

13,454

 

GROSS MARGIN

 

4,667

 

 

4,191

 

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

1,822

 

 

1,794

 

Research, development and engineering expenses

 

730

 

 

658

 

Equity, royalty and interest income from investees

 

256

 

 

315

 

Other operating income (expense), net

 

(25

)

 

1

 

OPERATING INCOME

 

2,346

 

 

2,055

 

Interest income

 

38

 

 

26

 

Interest expense

 

87

 

 

82

 

Other income, net

 

174

 

 

44

 

INCOME BEFORE INCOME TAXES

 

2,471

 

 

2,043

 

Income tax expense

 

501

 

 

466

 

CONSOLIDATED NET INCOME

 

1,970

 

 

1,577

 

Less: Net income attributable to noncontrolling interests

 

10

 

 

15

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

1,960

 

 

$

1,562

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

12.50

 

 

$

9.57

 

Diluted

 

$

12.45

 

 

$

9.53

 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

156.8

 

 

163.3

 

Diluted

 

157.4

 

 

163.9

 

(a)

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

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

 

In millions, except par value

 

September 29,

2019

 

December 31,

2018

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,560

 

 

$

1,303

 

Marketable securities

 

303

 

 

222

 

Total cash, cash equivalents and marketable securities

 

1,863

 

 

1,525

 

Accounts and notes receivable, net

 

3,934

 

 

3,866

 

Inventories

 

3,821

 

 

3,759

 

Prepaid expenses and other current assets

 

610

 

 

668

 

Total current assets

 

10,228

 

 

9,818

 

Long-term assets

 

 

 

 

Property, plant and equipment, net

 

4,056

 

 

4,096

 

Investments and advances related to equity method investees

 

1,250

 

 

1,222

 

Goodwill

 

1,288

 

 

1,126

 

Other intangible assets, net

 

1,022

 

 

909

 

Pension assets

 

970

 

 

929

 

Other assets

 

1,532

 

 

962

 

Total assets

 

$

20,346

 

 

$

19,062

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable (principally trade)

 

$

2,830

 

 

$

2,822

 

Loans payable

 

103

 

 

54

 

Commercial paper

 

902

 

 

780

 

Accrued compensation, benefits and retirement costs

 

494

 

 

679

 

Current portion of accrued product warranty

 

817

 

 

654

 

Current portion of deferred revenue

 

545

 

 

498

 

Other accrued expenses

 

997

 

 

852

 

Current maturities of long-term debt

 

37

 

 

45

 

Total current liabilities

 

6,725

 

 

6,384

 

Long-term liabilities

 

 

 

 

Long-term debt

 

1,619

 

 

1,597

 

Pensions and other postretirement benefits

 

521

 

 

532

 

Accrued product warranty

 

645

 

 

740

 

Deferred revenue

 

769

 

 

658

 

Other liabilities

 

1,314

 

 

892

 

Total liabilities

 

$

11,593

 

 

$

10,803

 

 

 

 

 

 

EQUITY

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued

 

$

2,322

 

 

$

2,271

 

Retained earnings

 

14,315

 

 

12,917

 

Treasury stock, at cost, 69.2 and 64.4 shares

 

(6,784

)

 

(6,028

)

Common stock held by employee benefits trust, at cost, 0.3 and 0.4 shares

 

(3

)

 

(5

)

Accumulated other comprehensive loss

 

(2,040

)

 

(1,807

)

Total Cummins Inc. shareholders’ equity

 

7,810

 

 

7,348

 

Noncontrolling interests

 

943

 

 

911

 

Total equity

 

$

8,753

 

 

$

8,259

 

Total liabilities and equity

 

$

20,346

 

 

$

19,062

 

(a)

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

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

 

 

 

Nine months ended

In millions

 

September 29,

2019

 

September 30,

2018

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

1,970

 

 

$

1,577

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities

 

 

 

 

Depreciation and amortization

 

493

 

 

456

 

Deferred income taxes

 

(14

)

 

(167

)

Equity in income of investees, net of dividends

 

(44

)

 

(156

)

Pension contributions (in excess of) under expense, net

 

(62

)

 

36

 

Other postretirement benefits payments in excess of expense, net

 

(12

)

 

(8

)

Stock-based compensation expense

 

37

 

 

38

 

Gain on corporate owned life insurance

 

(64

)

 

(8

)

Foreign currency remeasurement and transaction exposure

 

(54

)

 

(27

)

Changes in current assets and liabilities, net of acquisitions

 

 

 

 

Accounts and notes receivable

 

(101

)

 

(429

)

Inventories

 

(62

)

 

(773

)

Other current assets

 

48

 

 

(100

)

Accounts payable

 

(3

)

 

467

 

Accrued expenses

 

(74

)

 

276

 

Changes in other liabilities

 

168

 

 

118

 

Other, net

 

117

 

 

88

 

Net cash provided by operating activities

 

2,343

 

 

1,388

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

(395

)

 

(361

)

Investments in internal use software

 

(50

)

 

(55

)

Investments in and advances to equity investees

 

(16

)

 

(9

)

Acquisitions of businesses, net of cash acquired

 

(237

)

 

(70

)

Investments in marketable securities—acquisitions

 

(367

)

 

(316

)

Investments in marketable securities—liquidations

 

296

 

 

298

 

Cash flows from derivatives not designated as hedges

 

(86

)

 

(56

)

Other, net

 

26

 

 

50

 

Net cash used in investing activities

 

(829

)

 

(519

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Net borrowings of commercial paper

 

122

 

 

502

 

Payments on borrowings and finance lease obligations

 

(47

)

 

(54

)

Net borrowings under short-term credit agreements

 

53

 

 

9

 

Distributions to noncontrolling interests

 

(33

)

 

(30

)

Dividend payments on common stock

 

(562

)

 

(537

)

Repurchases of common stock

 

(806

)

 

(879

)

Other, net

 

75

 

 

29

 

Net cash used in financing activities

 

(1,198

)

 

(960

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(59

)

 

(56

)

Net increase (decrease) in cash and cash equivalents

 

257

 

 

(147

)

Cash and cash equivalents at beginning of year

 

1,303

 

 

1,369

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

1,560

 

 

$

1,222

 

(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 Systems

 

Electrified Power

 

Total Segments

 

Intersegment

Eliminations (1)

 

Total

Three months ended September 29, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

1,822

 

 

$

2,001

 

 

$

1,253

 

 

$

683

 

 

$

9

 

 

$

5,768

 

 

$

 

 

$

5,768

 

Intersegment sales

 

594

 

 

3

 

 

397

 

 

443

 

 

 

 

1,437

 

 

(1,437

)

 

 

Total sales

 

2,416

 

 

2,004

 

 

1,650

 

 

1,126

 

 

9

 

 

7,205

 

 

(1,437

)

 

5,768

 

Research, development and engineering expenses

 

79

 

 

7

 

 

73

 

 

58

 

 

25

 

 

242

 

 

 

 

242

 

Equity, royalty and interest income from investees

 

34

 

 

12

 

 

9

 

 

13

 

 

 

 

68

 

 

 

 

68

 

Interest income

 

5

 

 

4

 

 

2

 

 

3

 

 

 

 

14

 

 

 

 

14

 

Segment EBITDA

 

341

 

 

186

 

 

286

 

 

158

 

 

(36

)

 

935

 

 

23

 

 

958

 

Depreciation and amortization (2)

 

50

 

 

29

 

 

67

 

 

29

 

 

2

 

 

177

 

 

 

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

14.1

%

 

9.3

%

 

17.3

%

 

14.0

%

 

NM

 

 

13.0

%

 

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,082

 

 

$

1,927

 

 

$

1,297

 

 

$

636

 

 

$

1

 

 

$

5,943

 

 

$

 

 

$

5,943

 

Intersegment sales

 

644

 

 

4

 

 

457

 

 

471

 

 

1

 

 

1,577

 

 

(1,577

)

 

 

Total sales

 

2,726

 

 

1,931

 

 

1,754

 

 

1,107

 

 

2

 

 

7,520

 

 

(1,577

)

 

5,943

 

Research, development and engineering expenses

 

74

 

 

5

 

 

71

 

 

57

 

 

22

 

 

229

 

 

 

 

229

 

Equity, royalty and interest income from investees

 

55

 

 

9

 

 

12

 

 

14

 

 

 

 

90

 

 

 

 

90

 

Interest income

 

3

 

 

4

 

 

1

 

 

1

 

 

 

 

9

 

 

 

 

9

 

Segment EBITDA

 

405

 

 

155

 

 

288

 

 

163

 

 

(30

)

 

981

 

 

2

 

 

983

 

Depreciation and amortization (2)

 

46

 

 

27

 

 

44

 

 

29

 

 

2

 

 

148

 

 

 

 

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

14.9

%

 

8.0

%

 

16.4

%

 

14.7

%

 

NM

 

 

13.0

%

 

 

 

16.5

%

“NM” – not meaningful information

(1)

Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended September 29, 2019 and September 30, 2018.

(2)

Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as “Interest expense.” A portion of depreciation expense is included in “Research, development and engineering expense.”

In millions

 

Engine

 

Distribution

 

Components

 

Power Systems

 

Electrified Power

 

Total Segments

 

Intersegment

Eliminations (1)

 

Total

Nine months ended September 29, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

5,879

 

 

$

6,009

 

 

$

4,055

 

 

$

2,030

 

 

$

20

 

 

$

17,993

 

 

$

 

 

$

17,993

 

Intersegment sales

 

1,893

 

 

24

 

 

1,302

 

 

1,376

 

 

 

 

4,595

 

 

(4,595

)

 

 

Total sales

 

7,772

 

 

6,033

 

 

5,357

 

 

3,406

 

 

20

 

 

22,588

 

 

(4,595

)

 

17,993

 

Research, development and engineering expenses

 

245

 

 

21

 

 

223

 

 

171

 

 

70

 

 

730

 

 

 

 

730

 

Equity, royalty and interest income from investees

 

152

 

 

35

 

 

30

 

 

39

 

 

 

 

256

 

 

 

 

256

 

Interest income

 

13

 

 

12

 

 

6

 

 

7

 

 

 

 

38

 

 

 

 

38

 

Segment EBITDA

 

1,195

 

 

529

 

 

908

 

 

469

 

 

(98

)

 

3,003

 

 

46

 

 

3,049

 

Depreciation and amortization (2)

 

151

 

 

86

 

 

160

 

 

88

 

 

6

 

 

491

 

 

 

 

491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

15.4

%

 

8.8

%

 

16.9

%

 

13.8

%

 

NM

 

 

13.3

%

 

 

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

5,945

 

 

$

5,762

 

 

$

4,012

 

 

$

1,922

 

 

$

4

 

 

$

17,645

 

 

$

 

 

$

17,645

 

Intersegment sales

 

1,923

 

 

16

 

 

1,382

 

 

1,505

 

 

1

 

 

4,827

 

 

(4,827

)

 

 

Total sales

 

7,868

 

 

5,778

 

 

5,394

 

 

3,427

 

 

5

 

 

22,472

 

 

(4,827

)

 

17,645

 

Research, development and engineering expenses

 

229

 

 

15

 

 

195

 

 

174

 

 

45

 

 

658

 

 

 

 

658

 

Equity, royalty and interest income from investees

 

189

 

 

33

 

 

42

 

 

51

 

 

 

 

315

 

 

 

 

315

 

Interest income

 

8

 

 

9

 

 

4

 

 

5

 

 

 

 

26

 

 

 

 

26

 

Segment EBITDA

 

1,053

 

 

423

 

 

752

 

 

491

 

 

(61

)

 

2,658

 

 

(78

)

 

2,580

 

Depreciation and amortization (2)

 

142

 

 

81

 

 

137

 

 

91

 

 

4

 

 

455

 

 

 

 

455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

13.4

%

 

7.3

%

 

13.9

%

 

14.3

%

 

NM

 

 

11.8

%

 

 

 

14.6

%

Contacts

Jon Mills

Director – External Communications

(317) 658-4540

jon.mills@cummins.com

Read full story here

error: Content is protected !!