Summary
Cummins Inc. reported a mixed financial performance for the quarter and six months ended July 1, 2012. While net sales for the six-month period saw a 5% increase to $8.92 billion, driven by strong North American on-highway markets and improved gross margins, the quarterly sales saw a slight 4% decrease to $4.45 billion. Net income attributable to Cummins Inc. for the six months increased to $924 million ($4.85 per diluted share) from $848 million ($4.34 per diluted share) in the prior year period. However, quarterly net income decreased to $469 million ($2.47 per diluted share) from $505 million ($2.60 per diluted share), impacted by a gain on disposition in the prior year and lower volumes in certain international markets. The company is navigating a challenging global economic environment, with demand declining in emerging markets like Brazil and China, while showing strength in North America. Strategic investments in new product development continue, alongside a focus on cost management and operational efficiencies. Cummins also highlighted its strong liquidity position with over $1.4 billion in cash, cash equivalents, and marketable securities, complemented by significant availability under its credit facilities.
Financial Highlights
52 data points| Revenue | $4.12B |
| Cost of Revenue | $3.08B |
| Gross Profit | $1.04B |
| R&D Expenses | $186.00M |
| SG&A Expenses | $456.00M |
| Operating Income | $493.00M |
| Interest Expense | $9.00M |
| Net Income | $352.00M |
| EPS (Basic) | $1.87 |
| EPS (Diluted) | $1.86 |
| Shares Outstanding (Basic) | 188.60M |
| Shares Outstanding (Diluted) | 189.00M |
Key Highlights
- 1For the six months ended July 1, 2012, Cummins reported a 5% increase in net sales to $8.92 billion and a 9% increase in net income attributable to Cummins Inc. to $924 million.
- 2Quarterly net sales for the period ending July 1, 2012, decreased by 4% to $4.45 billion, and net income attributable to Cummins Inc. decreased by 7% to $469 million.
- 3North American heavy-duty truck market showed significant growth (53% increase for six months), while demand in emerging markets like Brazil and China declined.
- 4The company repurchased $196 million of its common stock in the first six months of 2012, contributing to a decrease in diluted weighted-average shares outstanding.
- 5Cummins announced a 25% increase in its quarterly dividend to $0.50 per share, effective in the third quarter of 2012.
- 6The company ended the period with a strong liquidity position, including $1.145 billion in cash and cash equivalents and $261 million in marketable securities, with $1.2 billion available under its revolving credit facility.
- 7Acquisition of Hilite Germany GmbH for approximately $176 million was completed on July 18, 2012, expected to strengthen aftertreatment product offerings.