10-Q/APeriod: Q3 FY2007

CUMMINS INC Quarterly Report (Amendment) for Q3 Ended Sep 30, 2007

Filed November 6, 2007For Securities:CMI

Summary

This 10-Q/A filing from Cummins Inc. (CMI) for the period ending September 29, 2007, primarily serves as an amendment and focuses on disclosures related to legal proceedings, risk factors, and equity transactions. The company confirms that its disclosure controls and procedures remain effective, and there have been no material changes in its internal control over financial reporting. Investors should note that the company's legal proceedings and environmental liabilities are ongoing, and while reserves are established, there's no assurance that they will be adequate to cover all potential costs, nor that future litigation won't materially affect financial condition. The filing also details share repurchases made during the third quarter of 2007, totaling over 1.95 million shares, indicating a commitment to returning value to shareholders, and mentions the issuance of restricted stock to non-employee directors.

Key Highlights

  • 1Disclosure controls and procedures were effective as of September 29, 2007, with no material changes in internal control over financial reporting during the quarter.
  • 2The company is involved in ongoing legal proceedings and environmental claims, with established reserves, but acknowledges potential for liabilities to exceed these accruals and the risk of future litigation materially impacting financial condition.
  • 3Cummins Inc. repurchased a significant number of its equity securities (1,954,157 shares) during the third quarter of 2007, indicating active share buyback programs.
  • 4The average price paid per share for repurchases during the quarter ranged from approximately $113.04 to $121.23, with an overall average of $115.58 per share (adjusted for stock split).
  • 5The company issued 112 shares of restricted stock as compensation to non-employee directors during the quarter, exempt from registration under the Securities Act.
  • 6Information regarding market risk disclosures remains consistent with the company's 2006 Annual Report on Form 10-K.

Frequently Asked Questions

As of September 29, 2007, Cummins Inc. concluded that its disclosure controls and procedures were effective in ensuring timely and accurate disclosure of required information. There were no material changes in the company's internal control over financial reporting during the third quarter of 2007.

Cummins Inc. is involved in various legal actions and claims arising from its business operations, including product liability, intellectual property, contractual, workplace safety, and environmental matters. While the company maintains insurance and establishes reserves for probable and estimable losses, there is no guarantee that these provisions will be sufficient to cover all potential liabilities, and future litigation could materially impact the company's financial condition.

Yes, during the third quarter of 2007, Cummins Inc. repurchased a total of 1,954,157 shares of its common stock under its publicly announced plans and programs. This activity reflects a commitment to returning capital to shareholders.

This filing states that there have been no material changes in market risk disclosures since the company's 2006 Annual Report on Form 10-K. Investors are advised to refer to the 2006 10-K for a comprehensive discussion of market risks and to consider risks mentioned in both the 10-K and this 10-Q/A, as additional unstated risks could arise.