10-KPeriod: FY2011

CUMMINS INC Annual Report, Year Ended Dec 31, 2011

Filed February 21, 2012For Securities:CMI

Summary

Cummins Inc.'s 2011 10-K filing presents a company operating across four main segments: Engines, Components, Power Generation, and Distribution. The company's primary focus is on the design, manufacture, and sale of diesel and natural gas engines, as well as related products and services. As of December 30, 2011, Cummins operated in a diverse global market, with significant reliance on key customers and a substantial backlog indicating future revenue potential. The filing details the company's commitment to research and development, environmental compliance, and its global workforce. Investors should note the various risk factors outlined, including economic conditions, competition, and regulatory changes, which could impact the company's financial performance. The company's financial health is supported by its integrated business model and strategic segment approach, aiming to provide comprehensive power solutions.

Financial Highlights

50 data points
Beta

Revenue

$18.05B

25.4% Gross Margin

Net Income

$1.85B

10.2% Net Margin

EPS (Diluted)

$9.55

Total Assets

$11.67B

Cash & Equivalents

$1.48B

Free Cash Flow

$1.45B

Financial Statements
Beta
Revenue$18.05B
Cost of Revenue$13.46B
Gross Profit$4.59B
R&D Expenses$629.00M
SG&A Expenses$1.84B
Operating Income$2.68B
Interest Expense$44.00M
Net Income$1.85B
EPS (Basic)$9.58
EPS (Diluted)$9.55
Shares Outstanding (Basic)192.97M
Shares Outstanding (Diluted)193.60M

Key Highlights

  • 1Cummins Inc. operates through four primary business segments: Engine, Components, Power Generation, and Distribution, offering a diverse range of products and services.
  • 2The company reported a significant backlog as of December 30, 2011, indicating strong future demand for its products and services.
  • 3Research and development expenses are highlighted, suggesting a commitment to innovation and product improvement.
  • 4The filing includes a comprehensive list of risk factors that could impact the company's future performance, such as market conditions, competition, and regulatory environments.
  • 5Cummins has a global presence, with operations and customers worldwide, indicating a diversified revenue base.
  • 6The company emphasizes its ongoing efforts in environmental compliance, reflecting a focus on sustainability and regulatory adherence.

Frequently Asked Questions

Cummins Inc. is structured into four main operating segments: the Engine segment, which designs, manufactures, and sells engines; the Components segment, providing various engine-related components; the Power Generation segment, offering integrated power solutions including generators; and the Distribution segment, which handles sales and services of the company's products and those of third parties.

The backlog as of December 30, 2011, represents orders that have been received but not yet fulfilled. A substantial backlog typically indicates strong future demand and provides visibility into upcoming revenues, which is generally viewed positively by investors.

The filing outlines several risk factors, including, but not limited to, global economic conditions, fluctuations in demand for its products in various end markets (such as construction and mining), intense competition, changes in environmental regulations, and the ability to successfully manage its supply chain and international operations.

Cummins invests in research and development to drive innovation and enhance its product offerings. While specific figures aren't detailed here, the mention of R&D expense indicates a strategic focus on developing new technologies and improving existing products to maintain a competitive edge.