01—Abstract
Summary
Summary of the 10-K filed February 17, 2015. Cited figures are marked; the original filing is the authoritative source.
Cummins Inc. (CMI) reported its fiscal year 2014 results in this 10-K filing dated February 16, 2015.
The company's performance reflects its position as a global power leader, with diverse operating segments including Engines, Distribution, Components, and Power Generation. Investors should note the company's significant international presence and its exposure to global economic trends impacting the demand for its products, particularly in the transportation and industrial sectors. The filing details the company's strategic focus on innovation and sustainability, highlighting investments in research and development.
While the report doesn't provide specific financial figures for 2014 in the provided excerpt, it lays the groundwork for understanding the company's business structure, key risks, and operational segments. Investors would need to consult the full financial statements and Management's Discussion and Analysis (MD&A) for a complete picture of the company's financial health and performance in 2014.
02—Key points
Key Highlights
- Cummins operates across four key segments: Engine, Distribution, Components, and Power Generation, demonstrating a diversified business model.
- The company has a significant global footprint, with operations and sales worldwide, making it susceptible to international economic conditions.
- Risk factors are a key focus, indicating potential challenges such as economic downturns, competitive pressures, and regulatory changes.
- Research and Development (R&D) is highlighted, suggesting a commitment to innovation and future product development.
- Environmental sustainability and compliance are addressed, reflecting a growing focus on corporate social responsibility and operational impact.
- The filing indicates a substantial backlog, which can be a positive indicator of future revenue, though specific figures are not in the excerpt.
- The company utilizes joint ventures, alliances, and non-wholly-owned subsidiaries, impacting its consolidated financial reporting and operational control.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2014, Cummins Inc kept $0.09.
- Revenue$19.22B100.0%
- Cost of revenue−$14.36B74.7%
- Gross profit$4.86B25.3%
- Operating costs−$2.50B13.0%
- Operating income$2.37B12.3%
- Interest, other & tax−$714.0M3.7%
- Net income$1.65B8.6%
04—Financials
Financial Highlights
Figures from 10-KFY2014filed February 17, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $19.22B$17.30B | +11.1% |
| Cost of Revenue | $14.36B$13.02B | +10.3% |
| Gross Profit | $4.86B$4.28B | +13.6% |
| R&D Expenses | $754.00M$713.00M | +5.8% |
| SG&A Expenses | $2.10B$1.82B | +15.3% |
| Operating Income | $2.37B$2.10B | +12.6% |
| Interest Expense | $64.00M$41.00M | +56.1% |
| Net Income | $1.65B$1.48B | +11.3% |
| EPS (Basic) | $9.04$7.93 | +14.0% |
| EPS (Diluted) | $9.02$7.91 | +14.0% |
| Shares Outstanding (Basic) | 182.64M186.99M | −2.3% |
| Shares Outstanding (Diluted) | 183.08M187.42M | −2.3% |
05—Questions
Frequently Asked Questions
What are Cummins Inc.'s main business segments?
Cummins Inc. operates through four primary segments: Engine, Distribution, Components, and Power Generation. Each segment serves different markets and customer needs within the power solutions industry.
What are the key risks for Cummins Inc. as outlined in the filing?
While specific risks are detailed in the full report, common risks for a company like Cummins include global economic downturns affecting demand for its products, intense competition within the engine and power generation markets, fluctuations in raw material costs, and regulatory changes related to emissions and environmental standards.
Does the filing provide specific financial results for 2014?
The provided excerpt of the 10-K filing outlines the structure and content of the report but does not include the detailed financial results or performance metrics for the fiscal year 2014. Investors would need to refer to the full financial statements and the Management's Discussion and Analysis (MD&A) section for this information.
What is Cummins Inc.'s approach to innovation and future growth?
The filing mentions Research and Development (R&D) as a key area, indicating that Cummins invests in developing new technologies and products. This suggests a strategic focus on innovation to maintain a competitive edge and address evolving market demands, including sustainability.
06—Continue