CMI
$177.10
Cummins
$1.79
1.02%
Earnings Details
2nd Quarter June 2017
Tuesday, August 01, 2017 7:30:02 AM
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Summary

Cummins Misses

Cummins (CMI) reported 2nd Quarter June 2017 earnings of $2.53 per share on revenue of $5.1 billion. The consensus earnings estimate was $2.58 per share on revenue of $4.8 billion. The Earnings Whisper number was $2.65 per share. Revenue grew 12.1% on a year-over-year basis.

The company said it expects 2017 revenue of $19.08 billion to $19.43 billion. The company's previous guidance was revenue of $18.21 billion to $18.74 billion and the current consensus estimate is revenue of $18.48 billion for the year ending December 31, 2017.

Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.

Results
Reported Earnings
$2.53
Earnings Whisper
$2.65
Consensus Estimate
$2.58
Reported Revenue
$5.08 Bil
Revenue Estimate
$4.79 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Cummins Announces Second Quarter Results; Raises Outlook for 2017

EBIT of 12.2 percent of sales, Diluted EPS of $2.53

The company expects stronger sales growth with full year 2017 revenues to be up 9 to 11 percent, compared to prior guidance of up 4 to 7 percent

--EBIT expected to be in the range of 11.75 to 12.5 percent, unchanged from prior guidance

Cummins Inc. (CMI) today reported results for the second quarter of 2017.

Second quarter revenues of $5.1 billion increased 12 percent from the same quarter in 2016. Higher demand for trucks and construction equipment in North America and China, and stronger sales to mining, and oil & gas customers were the main drivers of revenue growth. Currency negatively impacted revenues by approximately 1 percent compared to last year, primarily due to the appreciation of the US dollar. Revenues in North America increased 13 percent and international sales grew 11 percent due to strong demand in China and India.

Net income attributable to Cummins in the second quarter was $424 million ($2.53 per diluted share), compared to $406 million ($2.40 per diluted share) in the same quarter a year ago. The tax rate in the second quarter of 2017 was 26.4 percent.

Earnings before interest and taxes (EBIT) was $620 million, or 12.2 percent of sales, compared to $591 million or 13.1 percent of sales a year ago.

"We delivered strong revenue growth in all four operating segments in the second quarter due to improving conditions in a number of important markets where we also have leading share. Earnings increased due to solid operational performance, partially offset by higher warranty costs that resulted in second quarter EBIT that was below our expectations" said Chairman and CEO Tom Linebarger. "As a result of stronger than expected orders in truck and construction markets in North America and China, and improving demand from global mining customers we have raised our 2017 full year outlook."

Through the end of the second quarter, the Company has returned $463 million to shareholders in the form of dividends and share repurchase and recently raised its quarterly cash dividend by 5.4 percent. Cummins plans to return 50 percent of its Operating Cash Flow to shareholders in 2017.

The Company continues to execute its strategy to be the leading global powertrain supplier. Cummins and power management company Eaton (ETN) have successfully completed the formation of the Eaton Cummins Automated Transmission Technologies joint venture that was announced on April 10, 2017. Cummins and Eaton each own 50 percent of the global joint venture which will design, manufacture, sell and support all future medium-duty and heavy-duty automated transmissions for the commercial vehicle market. Eaton’s current medium-duty automated transmission, Procision(R), and next generation heavy-duty automated transmissions, will be part of the business which will also market, sell, and support Eaton’s current generation of automated heavy-duty transmissions to OEM customers in North America. Today marks the first day of operations for the joint venture and the financial results will be consolidated within Cummins’ Components Segment. We are still in the process of completing the purchase accounting associated with our investment in this new venture, as required by GAAP(1), but we do not currently expect the joint venture to have a material impact on Cummins’ financial results in 2017.

Based on the current forecast, Cummins expects full year 2017 revenues to be up 9 to 11 percent, higher than the prior forecast of up 4 to 7 percent. EBIT is expected to be in the range of 11.75 to 12.5 percent of sales, unchanged from prior guidance. This forecast excludes the impact of our new Eaton Cummins Automated Transmission Technologies joint venture.

Other recent highlights:

Cummins announced the election of two new members to its Board of Directors - Karen Quintos, Chief Customer Officer, Dell Technologies and Rich Freeland, Cummins President and Chief Operating Officer

DiversityInc named Cummins one of the Top 50 Companies for Diversity for the eleventh consecutive year. Cummins ranked No. 21 on the 2017 annual list, which included more than 1,000 participating companies

(1) Generally Accepted Accounting Principles

Second quarter 2017 detail (all comparisons to same period in 2016)

Engine Segment

-- Sales - $2.3 billion, up 15 percent.

Segment EBIT - $277 million, or 12 percent of sales, compared to 206 million or 10.3 percent of sales a year ago

On-highway revenues increased by 14 percent, and off-highway revenues increased 20 percent primarily due to increased demand in global truck and construction markets

Distribution Segment

-- Sales - $1.7 billion, up 12 percent

Segment EBIT - $96 million, or 5.6 percent of sales, compared to $87 million or 5.6 percent of sales

Organic sales increased 7 percent and revenue from the acquisition completed in the fourth quarter of 2016 added 6 percent with a negative foreign currency impact of 1 percent

Components Segment

-- Sales - $1.5 billion, up 14 percent.

Segment EBIT - $190 million , or 13.1 percent of sales, compared to $190 million or 14.9 percent of sales

EBIT in the second quarter of 2017 reflects a $26m unfavorable change in estimate of warranty liability

International revenue increased 25 percent, primarily due to China and India, in addition to a 6 percent sales increase in North America due to higher heavy and medium-duty truck production

Power Systems Segment

-- Sales - $1.0 billion, up 10 percent

Segment EBIT - $61 million, or 6 percent of sales, compared to $90 million, or 9.8 percent of sales

EBIT in the second quarter of 2017 reflects a $31 million accrual for the estimated costs of a quality campaign

Increased demand in mining and oil & gas markets was the primary driver of revenue growth

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 55,400 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 7,400 dealer locations. Cummins earned $1.39 billion on sales of $17.5 billion in 2016. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at www.twittter.com/cummins and on YouTube at www.youtube.com/cumminsinc.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward looking statements include, without limitation, statements relating to our plans and expectations for our revenues for the full year of 2017. 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 2016 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
July 2,
July 3,
2017
2016
NET SALES
$
5,078
$
4,528
Cost of sales
3,829
3,331
GROSS MARGIN
1,249
1,197
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses
596
524
Research, development and engineering expenses
174
155
Equity, royalty and interest income from investees
98
88
Loss contingency
--
39
Other operating income (expense), net
18
--
OPERATING INCOME
595
567
Interest income
5
6
Interest expense
21
16
Other income (expense), net
20
18
INCOME BEFORE INCOME TAXES
599
575
Income tax expense
158
148
CONSOLIDATED NET INCOME
441
427
Less: Net income attributable to noncontrolling interests
17
21
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
$
424
$
406
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic
$
2.53
$
2.41
Diluted
$
2.53
$
2.40
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic
167.3
168.8
Diluted
167.8
169.0
CASH DIVIDENDS DECLARED PER COMMON SHARE
$
1.025
$
0.975
(a)
Prepared on an unaudited basis in accordance with accounting
principles generally accepted in the United States of America.
Six months ended
In millions, except per share amounts
July 2,
July 3,
2017
2016
NET SALES
$
9,667
$
8,819
Cost of sales
7,290
6,566
GROSS MARGIN
2,377
2,253
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses
1,133
1,014
Research, development and engineering expenses
332
321
Equity, royalty and interest income from investees
206
160
Loss contingency
--
39
Other operating income (expense), net
23
(2 )
OPERATING INCOME
1,141
1,037
Interest income
7
12
Interest expense
39
35
Other income (expense), net
38
26
INCOME BEFORE INCOME TAXES
1,147
1,040
Income tax expense
301
280
CONSOLIDATED NET INCOME
846
760
Less: Net income attributable to noncontrolling interests
26
33
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
$
820
$
727
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic
$
4.90
$
4.27
Diluted
$
4.88
$
4.26
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic
167.4
170.3
Diluted
167.9
170.5
CASH DIVIDENDS DECLARED PER COMMON SHARE
$
2.05
$
1.95
(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
July 2,
December 31,
2017
2016
ASSETS
Current assets
Cash and cash equivalents
$
1,293
$
1,120
Marketable securities
174
260
Total cash, cash equivalents and marketable securities
1,467
1,380
Accounts and notes receivable, net
3,553
3,025
Inventories
2,982
2,675
Prepaid expenses and other current assets
600
627
Total current assets
8,602
7,707
Long-term assets
Property, plant and equipment
7,804
7,635
Accumulated depreciation
(4,017 )
(3,835 )
Property, plant and equipment, net
3,787
3,800
Investments and advances related to equity method investees
1,162
946
Goodwill
488
480
Other intangible assets, net
339
332
Pension assets
852
731
Other assets
1,030
1,015
Total assets
$ 16,260
$ 15,011
LIABILITIES
Current liabilities
Accounts payable (principally trade)
$
2,300
$
1,854
Loans payable
54
41
Commercial paper
134
212
Accrued compensation, benefits and retirement costs
475
412
Current portion of accrued product warranty
392
333
Current portion of deferred revenue
520
468
Other accrued expenses
974
970
Current maturities of long-term debt
45
35
Total current liabilities
4,894
4,325
Long-term liabilities
Long-term debt
1,564
1,568
Postretirement benefits other than pensions
318
329
Pensions
327
326
Other liabilities and deferred revenue
1,335
1,289
Total liabilities
$
8,438
$
7,837
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and
$
2,184
$
2,153
222.4 shares issued
Retained earnings
11,517
11,040
Treasury stock, at cost, 54.7 and 54.2 shares
(4,586 )
(4,489 )
Common stock held by employee benefits trust, at cost, 0.6 and 0.7
(7 )
(8 )
shares
Accumulated other comprehensive loss
(1,615 )
(1,821 )
Total Cummins Inc. shareholders’ equity
7,493
6,875
Noncontrolling interests
329
299
Total equity
$
7,822
$
7,174
Total liabilities and equity
$ 16,260
$ 15,011
(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)
Six months ended
In millions
July 2, 2017
July 3, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income
$
846
$
760
Adjustments to reconcile consolidated net income to net cash
provided by operating activities
Depreciation and amortization
284
259
Deferred income taxes
--
2
Equity in income of investees, net of dividends
(132 )
(87 )
Pension contributions in excess of expense
(44 )
(82 )
Other post-retirement benefits payments in excess of expense
(8 )
(17 )
Stock-based compensation expense
23
20
Restructuring payments
--
(42 )
Loss contingency
--
39
Translation and hedging activities
31
(45 )
Changes in current assets and liabilities
Accounts and notes receivable
(488 )
(252 )
Inventories
(264 )
(101 )
Other current assets
21
189
Accounts payable
403
143
Accrued expenses
132
(209 )
Changes in other liabilities and deferred revenue
103
129
Other, net
(81 )
32
Net cash provided by operating activities
826
738
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(182 )
(189 )
Investments in internal use software
(40 )
(27 )
Investments in and advances to equity investees
(64 )
(17 )
Investments in marketable securities--acquisitions
(69 )
(379 )
Investments in marketable securities--liquidations
162
237
Cash flows from derivatives not designated as hedges
19
(21 )
Other, net
14
5
Net cash used in investing activities
(160 )
(391 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
2
109
Net (payments) borrowings of commercial paper
(78 )
200
Payments on borrowings and capital lease obligations
(29 )
(133 )
Distributions to noncontrolling interests
(10 )
(24 )
Dividend payments on common stock
(343 )
(333 )
Repurchases of common stock
(120 )
(695 )
Other, net
34
(20 )
Net cash used in financing activities
(544 )
(896 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
51
(117 )
Net increase (decrease) in cash and cash equivalents
173
(666 )
Cash and cash equivalents at beginning of year
1,120
1,711
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
1,293
$ 1,045
(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
Intersegment
Total
Systems
Eliminations (1)
Three months ended July 2, 2017
External sales
$
1,711
$
1,716
$
1,064
$
587
$ --
$
5,078
Intersegment sales
596
6
390
430
(1,422 )
--
Total sales
2,307
1,722
1,454
1,017
(1,422 )
5,078
Depreciation and amortization (2)
46
31
38
29
--
144
Research, development and engineering expenses
63
4
57
50
--
174
Equity, royalty and interest income from investees
56
13
15
14
--
98
Interest income
2
1
1
1
--
5
Segment EBIT
277
96
190
61
(4 )
620
Segment EBIT as a percentage of total sales
12.0
%
5.6
%
13.1
%
6.0
%
12.2
%
Three months ended July 3, 2016
External sales
$
1,504
$
1,538
$
933
$
553
$ --
$
4,528
Intersegment sales
498
6
346
368
(1,218 )
--
Total sales
2,002
1,544
1,279
921
(1,218 )
4,528
Depreciation and amortization (2)
41
29
32
29
--
131
Research, development and engineering expenses
53
3
51
48
--
155
Equity, royalty and interest income from investees
46
19
12
11
--
88
Loss contingency
39
--
--
--
--
39
Interest income
3
1
1
1
--
6
Segment EBIT
206
87
190
90
18
591
Segment EBIT as a percentage of total sales
10.3
%
5.6
%
14.9
%
9.8
%
13.1
%
(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 July 2, 2017 and July 3, 2016.
(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."
In millions
Engine
Distribution
Components
Power
Intersegment
Total
Systems
Eliminations (1)
Six months ended July 2, 2017
External sales
$
3,168
$
3,353
$
2,044
$
1,102
$ --
$
9,667
Intersegment sales
1,162
14
754
797
(2,727 )
--
Total sales
4,330
3,367
2,798
1,899
(2,727 )
9,667
Depreciation and amortization (2)
90
61
75
57
--
283
Research, development and engineering expenses
117
8
107
100
--
332
Equity, royalty and interest income from investees
128
24
28
26
--
206
Interest income
3
2
1
1
--
7
Segment EBIT
506
196
369
118
(3 )
1,186
Segment EBIT as a percentage of total sales
11.7
%
5.8
%
13.2
%
6.2
%
12.3
%
Six months ended July 3, 2016
External sales
$
2,993
$
2,996
$
1,830
$
1,000
$ --
$
8,819
Intersegment sales
985
11
686
729
(2,411 )
--
Total sales
3,978
3,007
2,516
1,729
(2,411 )
8,819
Depreciation and amortization (2)
80
57
63
58
--
258
Research, development and engineering expenses
110
7
107
97
--
321
Equity, royalty and interest income from investees
82
37
20
21
--
160
Loss contingency
39
--
--
--
--
39
Interest income
5
2
2
3
--
12
Segment EBIT
403
174
353
136
9
1,075
Segment EBIT as a percentage of total sales
10.1
%
5.8
%
14.0
%
7.9
%
12.2
%
(1)
Includes intersegment sales, intersegment profit in inventory
eliminations and unallocated corporate expenses. There were no
significant unallocated corporate expenses for the six months ended
July 2, 2017 and July 3, 2016.
(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 was $1 million
for both of the six months ended July 2, 2017 and July 3, 2016.

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
Six months ended
In millions
July 2,
July 3,
July 2,
July 3,
2017
2016
2017
2016
Total segment EBIT
$ 620
$ 591
$ 1,186
$
1,075
Less: Interest expense
21
16
39
35
Income before income taxes
$ 599
$ 575
$ 1,147
$
1,040

CUMMINS INC. AND SUBSIDIARIES SELECT FOOTNOTE DATA (Unaudited)

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
Six months ended
In millions
July 2,
July 3,
July 2,
July 3,
2017
2016
2017
2016
Distribution entities
Komatsu Cummins Chile, Ltda.
$
8
$
8
$
15
$
18
North American distributors
--
6
--
11
All other distributors
--
1
--
1
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd.
22
22
55
40
Dongfeng Cummins Engine Company, Ltd.
19
15
41
22
Chongqing Cummins Engine Company, Ltd.
10
9
19
17
All other manufacturers
27
16
51
32
Cummins share of net income
86
77
181
141
Royalty and interest income
12
11
25
19
Equity, royalty and interest income from investees
$
98
$ 88
$
206
$
160

CUMMINS INC. AND SUBSIDIARIES FINANCIAL MEASURES THAT SUPPLEMENT GAAP (Unaudited)

Earnings before interest, income taxes and noncontrolling interests

We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries. 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, accounting principles generally accepted in the United States and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of "Net income attributable to Cummins Inc." to EBIT for each of the applicable periods:

Three months ended
Six months ended
In millions
July 2,
July 3,
July 2,
July 3,
2017
2016
2017
2016
Net income attributable to Cummins Inc.
$ 424
$ 406
$
820
$
727
Net income attributable to Cummins Inc. as a percentage of net
8.3
%
9.0
%
8.5
%
8.2
%
sales
Add
Net income attributable to noncontrolling interests
17
21
26
33
Consolidated net income
441
427
846
760
Add
Interest expense
21
16
39
35
Income tax expense
158
148
301
280
Earnings before interest expense and income taxes
$ 620
$ 591
$ 1,186
$
1,075
EBIT as a percentage of net sales
12.2
%
13.1
%
12.3
%
12.2
%

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

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2017
In millions
Q1
Q2
Q3
Q4
YTD
Heavy-duty truck
$
620
$
714
$ --
$ --
$
1,334
Medium-duty truck and bus
544
701
--
--
1,245
Light-duty automotive
423
429
--
--
852
Off-highway
436
463
--
--
899
Total sales
$ 2,023
$ 2,307
$ --
$ --
$
4,330
2016
In millions
Q1
Q2
Q3
Q4
YTD
Heavy-duty truck
$
631
$
622
$
625
$
565
$
2,443
Medium-duty truck and bus
549
600
517
606
2,272
Light-duty automotive
433
394
345
409
1,581
Off-highway
363
386
372
387
1,508
Total sales
$ 1,976
$ 2,002
$
1,859
$
1,967
$
7,804

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

2017
Units
Q1
Q2
Q3
Q4
YTD
Heavy-duty
19,200
24,100
--
--
43,300
Medium-duty
60,300
71,600
--
--
131,900
Light-duty
63,100
65,600
--
--
128,700
Total units
142,600
161,300
--
--
303,900
2016
Units
Q1
Q2
Q3
Q4
YTD
Heavy-duty
19,700
20,700
20,100
18,500
79,000
Medium-duty
55,400
62,300
53,400
58,000
229,100
Light-duty
61,700
57,100
49,800
60,000
228,600
Total units
136,800
140,100
123,300
136,500
536,700

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2017
In millions
Q1
Q2
Q3
Q4
YTD
Parts
$
745
$
759
$ --
$ --
$
1,504
Service
319
320
--
--
639
Power generation
306
329
--
--
635
Engines
275
314
--
--
589
Total sales
$ 1,645
$ 1,722
$ --
$ --
$
3,367
2016
In millions
Q1
Q2
Q3
Q4
YTD
Parts
$
648
$
642
$
643
$
694
$
2,627
Service
299
297
299
320
1,215
Power generation
275
326
291
347
1,239
Engines
241
279
271
309
1,100
Total sales
$ 1,463
$ 1,544
$
1,504
$
1,670
$
6,181

Component Segment Sales by Business

In the first quarter of 2017, our Components segment reorganized its reporting structure to move an element of the emission solutions business to the fuel systems business to enhance operational, administrative and product development efficiencies. Prior year sales were reclassified to conform with this change.

Sales for our Components segment by product line were as follows:

2017
In millions
Q1
Q2
Q3
Q4
YTD
Emission solutions
$
616
$
674
$ --
$ --
$
1,290
Turbo technologies
287
307
--
--
594
Filtration
277
291
--
--
568
Fuel systems
164
182
--
--
346
Total sales
$ 1,344
$ 1,454
$ --
$ --
$
2,798
2016
In millions
Q1
Q2
Q3
Q4
YTD
Emission solutions
$
589
$
603
$
522
$
524
$
2,238
Turbo technologies
265
276
241
254
1,036
Filtration
252
262
244
252
1,010
Fuel systems
131
138
136
147
552
Total sales
$ 1,237
$ 1,279
$
1,143
$
1,177
$
4,836
2015
In millions
YTD
Emission solutions
$ 2,449
Turbo technologies
1,141
Filtration
1,010
Fuel systems
572
Total sales
$ 5,172

Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification

In the first quarter of 2017, our Power Systems segment reorganized its product lines to better reflect how the segment is managed. Prior year sales were reclassified to reflect these changes.

Sales for our Power Systems segment by product line were as follows:

2017
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
526
$
570
$ --
$ --
$
1,096
Industrial
275
353
--
--
628
Generator technologies
81
94
--
--
175
Total sales
$
882
$ 1,017
$ --
$ --
$
1,899
2016
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
518
$
602
$
543
$
593
$
2,256
Industrial
215
236
235
255
941
Generator technologies
75
83
78
84
320
Total sales
$
808
$
921
$
856
$
932
$
3,517
2015
In millions
YTD
Power generation
$ 2,588
Industrial
1,121
Generator technologies
358
Total sales
$ 4,067

High-horsepower unit shipments by engine classification were as follows:

2017
Units
Q1
Q2
Q3
Q4
YTD
Power generation
1,900
2,100
--
--
4,000
Industrial
1,300
1,700
--
--
3,000
Total units
3,200
3,800
--
--
7,000
2016
Units
Q1
Q2
Q3
Q4
YTD
Power generation
1,800
2,200
2,000
1,900
7,900
Industrial
1,000
1,100
1,000
1,300
4,400
Total units
2,800
3,300
3,000
3,200
12,300

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170801005461r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170801005461/en/

SOURCE: Cummins Inc.

Cummins Inc.
Carole Casto, 317-610-2480
Vice President - Marketing and Communications
carole.casto@cummins.com