01—Abstract
Summary
Summary of the 10-K filed February 26, 2010. Cited figures are marked; the original filing is the authoritative source.
Cummins Inc. (CMI) filed its 2009 10-K on February 25, 2010, detailing its business operations and financial performance.
The report covers the fiscal year ending December 30, 2009, a period likely influenced by the broader economic conditions of the time. Cummins operates across four key segments: Engine, Power Generation, Components, and Distribution, providing a diversified revenue stream through its extensive product offerings and services. Investors should note the company's strategic focus on innovation and global presence, as highlighted by its research and development investments and international joint ventures.
The filing also addresses risk factors, operational challenges, and the company's commitment to environmental compliance. While specific financial figures for 2009 are not provided in this excerpt, the structure of the report indicates a comprehensive overview of the company's business, financial condition, and outlook for the upcoming period.
02—Key points
Key Highlights
- Cummins operates through four primary segments: Engine, Power Generation, Components, and Distribution, indicating a diversified business model.
- The company actively engages in joint ventures, alliances, and non-wholly-owned subsidiaries, suggesting a strategy for global market penetration and risk sharing.
- Research and Development expenses are highlighted, signaling a commitment to innovation and future product development.
- The filing includes a section on Environmental Compliance, underscoring the company's focus on regulatory adherence and sustainability.
- Key operational information such as Seasonality, Largest Customers, and Backlog are discussed, providing insights into business cycles and customer concentration.
- The report identifies Theodore M. Solso as Chairman and CEO, and Patrick J. Ward as CFO, key leadership personnel.
- Forward-looking statements are accompanied by cautionary notes, a standard disclosure practice for public companies.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Cummins Inc kept $0.04.
- Revenue$10.80B100.0%
- Cost of revenue−$8.63B79.9%
- Gross profit$2.17B20.1%
- Operating costs−$1.49B13.8%
- Operating income$682.0M6.3%
- Interest, other & tax−$254.0M2.4%
- Net income$428.0M4.0%
Where FY2009 revenue went
$10.80B- Cost of revenue: $8.63B, 80% of revenue
- Net income: $428.0M, 4.0% of revenue
- R&D: $362.0M, 3.4% of revenue
- SG&A: $1.24B, 11% of revenue
- Interest, other & tax: $254.0M, 2.4% of revenue
Kept 4.0% as net incomeNet income $428.0M · 4.0%Interest, other & tax $254.0M · 2.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 26, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $10.80B$14.34B | −24.7% |
| Cost of Revenue | $8.63B$11.40B | −24.3% |
| Gross Profit | $2.17B$2.94B | −26.2% |
| R&D Expenses | $362.00M$422.00M | −14.2% |
| SG&A Expenses | $1.24B$1.45B | −14.6% |
| Operating Income | $682.00M$1.27B | −46.4% |
| Interest Expense | $35.00M$42.00M | −16.7% |
| Net Income | $428.00M$755.00M | −43.3% |
| EPS (Basic) | $2.17$3.87 | −43.9% |
| EPS (Diluted) | $2.16$3.84 | −43.7% |
| Shares Outstanding (Basic) | 197.45M194.96M | +1.3% |
| Shares Outstanding (Diluted) | 197.70M196.53M | +0.6% |
05—Questions
Frequently Asked Questions
What are Cummins Inc.'s main business segments?
Cummins Inc. operates through four main business segments: Engine, Power Generation, Components, and Distribution. These segments encompass a wide range of products and services related to power solutions.
Does Cummins Inc. have significant international operations?
Yes, the filing mentions joint ventures, alliances, and non-wholly-owned subsidiaries, which typically indicate a global operational footprint and strategic international partnerships.
What is Cummins Inc.'s approach to innovation?
The company dedicates resources to Research and Development, as indicated by a specific section on R&D expenses in the filing, suggesting a focus on developing new technologies and improving existing products.
Are there any specific risks mentioned for investors to consider?
The filing includes a 'Risk Factors' section (Item 1A), which investors should review for a comprehensive understanding of potential challenges and risks facing the company. While the specific risks are not detailed in this excerpt, this section is crucial for due diligence.
06—Continue