01—Abstract
Summary
Summary of the 10-K filed February 21, 2012. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Cummins Inc. operates through four primary business segments: Engine, Components, Power Generation, and Distribution, offering a diverse range of products and services.
- The company reported a significant backlog as of December 30, 2011, indicating strong future demand for its products and services.
- Research and development expenses are highlighted, suggesting a commitment to innovation and product improvement.
- The filing includes a comprehensive list of risk factors that could impact the company's future performance, such as market conditions, competition, and regulatory environments.
- Cummins has a global presence, with operations and customers worldwide, indicating a diversified revenue base.
- The company emphasizes its ongoing efforts in environmental compliance, reflecting a focus on sustainability and regulatory adherence.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Cummins Inc kept $0.10.
- Revenue$18.05B100.0%
- Cost of revenue−$13.46B74.6%
- Gross profit$4.59B25.4%
- Operating costs−$1.91B10.6%
- Operating income$2.68B14.9%
- Interest, other & tax−$833.0M4.6%
- Net income$1.85B10.2%
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 21, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $18.05B$13.23B | +36.5% |
| Cost of Revenue | $13.46B$10.06B | +33.8% |
| Gross Profit | $4.59B$3.17B | +44.9% |
| R&D Expenses | $629.00M$414.00M | +51.9% |
| SG&A Expenses | $1.84B$1.49B | +23.5% |
| Operating Income | $2.68B$1.60B | +67.4% |
| Interest Expense | $44.00M$40.00M | +10.0% |
| Net Income | $1.85B$1.04B | +77.7% |
| EPS (Basic) | $9.58$5.29 | +81.1% |
| EPS (Diluted) | $9.55$5.28 | +80.9% |
| Shares Outstanding (Basic) | 192.97M196.70M | −1.9% |
| Shares Outstanding (Diluted) | 193.60M197.15M | −1.8% |
05—Questions
Frequently Asked Questions
What are Cummins' main business segments and what do they entail?
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.
What is the significance of the company's backlog?
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.
What are the key risks mentioned in the filing that could affect Cummins' business?
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.
How does Cummins approach research and development?
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.
06—Continue