SEC Filings


8-K
CUMMINS INC filed this Form 8-K on 10/31/2017
Entire Document
 


Outlook

Based on its current forecast, Cummins expects full-year 2017 revenues to grow 14% to 15%, an increase from the company’s previous projection of 9% to 11% growth. EBIT is expected to be in the range of 11.8% to 12.2% of sales, which is unchanged from the prior guidance except for the inclusion of the impact of the new Eaton Cummins Automated Transmission Technologies joint venture. The joint venture, which is consolidated within the Components segment, is expected to report 2017 sales of approximately $150 million and negative EBIT of $25 million due in part to the amortization of intangible assets.
Third quarter 2017 highlights:

The Company entered into an asset purchase agreement with Brammo, Inc., which designs and develops battery packs for mobile and stationary applications. When complete, this will be an important milestone in Cummins’ efforts to become a global electrified power leader.

The Eaton Cummins Automated Transmission Technologies joint venture became fully operational on schedule on August 1st. The joint venture will capitalize on the secular shift to more automated transmissions in commercial vehicle markets.

Third quarter 2017 detail (all comparisons to same period in 2016)

Engine Segment

Sales - $2.3 billion, up 26%
Segment EBIT - $229 million, or 9.8% of sales, compared to $89 million or 4.8% of sales
EBIT includes a $63 million warranty charge related to a quality campaign
On-highway revenues increased by 25%, and off-highway revenues increased 30% primarily due to increased demand globally in truck and construction markets

Distribution Segment

Sales - $1.8 billion, up 17%
Segment EBIT - $91 million, or 5.2% of sales, compared to $96 million or 6.4% of sales
Organic sales increased 12% due to improved sales to off-highway markets
The impact of acquisitions and the disposal of power generation rental assets in North America resulted in a net percent increase in revenues

Components Segment

Sales - $1.5 billion, up 34%.