01—Abstract
Summary
Summary of the 10-K filed February 12, 2016. Cited figures are marked; the original filing is the authoritative source.
Cummins Inc. (CMI) filed its 2015 10-K on February 11, 2016, detailing its performance and strategic positioning for the fiscal year ending December 30, 2015.
The report highlights the company's diversified business across four key segments: Engine, Distribution, Components, and Power Generation. Despite a dynamic global economic environment, Cummins demonstrated resilience through its broad product portfolio and extensive distribution network. The company's focus on innovation, environmental sustainability, and operational efficiency continues to be a cornerstone of its strategy, aiming to drive long-term shareholder value.
02—Key points
Key Highlights
- The company operates through four distinct segments: Engine, Distribution, Components, and Power Generation, providing a diversified revenue stream.
- Cummins emphasizes Research and Development (R&D) as a key driver for innovation and future growth, investing in new technologies and product enhancements.
- Environmental Sustainability and Compliance are significant areas of focus, reflecting the company's commitment to responsible operations and meeting evolving regulatory standards.
- The report details a global supply chain and relationships with the largest customers, underscoring the company's international reach and market penetration.
- Information on Seasonality is provided, indicating potential fluctuations in demand throughout the year for certain products or segments.
- The company maintains a robust backlog, suggesting a healthy pipeline of future orders and demand for its products and services.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, Cummins Inc kept $0.07.
- Revenue$19.11B100.0%
- Cost of revenue−$14.16B74.1%
- Gross profit$4.95B25.9%
- Operating costs−$2.89B15.1%
- Operating income$2.06B10.8%
- Interest, other & tax−$658.0M3.4%
- Net income$1.40B7.3%
Where FY2015 revenue went
$19.11B- Cost of revenue: $14.16B, 74% of revenue
- Net income: $1.40B, 7.3% of revenue
- R&D: $735.0M, 3.8% of revenue
- SG&A: $2.09B, 11% of revenue
- Interest, other & tax: $658.0M, 3.4% of revenue
Kept 7.3% as net incomeNet income $1.40B · 7.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 12, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $19.11B$19.22B | −0.6% |
| Cost of Revenue | $14.16B$14.36B | −1.4% |
| Gross Profit | $4.95B$4.86B | +1.8% |
| R&D Expenses | $735.00M$754.00M | −2.5% |
| SG&A Expenses | $2.09B$2.10B | −0.1% |
| Operating Income | $2.06B$2.37B | −13.0% |
| Interest Expense | $65.00M$64.00M | +1.6% |
| Net Income | $1.40B$1.65B | −15.3% |
| EPS (Basic) | $7.86$9.04 | −13.1% |
| EPS (Diluted) | $7.84$9.02 | −13.1% |
| Shares Outstanding (Basic) | 178.04M182.64M | −2.5% |
| Shares Outstanding (Diluted) | 178.41M183.08M | −2.6% |
05—Questions
Frequently Asked Questions
What were Cummins' main business segments in 2015?
In 2015, Cummins operated through four primary segments: Engine, Distribution, Components, and Power Generation. These segments represent the core of the company's business, covering a wide range of products and services for various industries.
What are the key risks facing Cummins as outlined in the filing?
The 10-K filing (Item 1A, Risk Factors) would typically detail risks such as global economic conditions, competition, changes in customer demand, regulatory changes (especially environmental), supply chain disruptions, and currency fluctuations. Investors should review this section carefully for a comprehensive understanding of potential headwinds.
How does Cummins address environmental concerns and sustainability?
Cummins dedicates significant attention to Environmental Sustainability and Environmental Compliance. This includes investments in R&D for cleaner technologies, efforts to reduce the environmental impact of its manufacturing processes, and adherence to environmental regulations across its global operations.
What is the significance of Cummins' joint ventures and alliances?
The company's engagement in Joint Ventures, Alliances, and Non-Wholly-Owned Subsidiaries is a strategic approach to expand market reach, share technological development costs, and access new markets or customer segments. This diversifies its operational structure and potential growth avenues.
06—Continue