SEC Filings


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

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
 
 
Three months ended
 
Favorable/
 
Nine months ended
 
Favorable/
 
 
October 1,
 
October 2,
 
(Unfavorable)
 
October 1,
 
October 2,
 
(Unfavorable)
 
 
2017
 
2016
 
Amount
 
Percent
 
2017
 
2016
 
Amount
 
Percent
Heavy-duty
 
28,100

 
20,100

 
8,000

 
40
%
 
71,400

 
60,500

 
10,900

 
18
%
Medium-duty
 
68,500

 
53,400

 
15,100

 
28
%
 
200,400

 
171,100

 
29,300

 
17
%
Light-duty
 
66,300

 
49,800

 
16,500

 
33
%
 
195,000

 
168,600

 
26,400

 
16
%
Total unit shipments
 
162,900

 
123,300

 
39,600

 
32
%
 
466,800

 
400,200

 
66,600

 
17
%
Sales
Engine segment sales for the three months ended October 1, 2017, increased $477 million versus the comparable period in 2016, driven by:
Heavy-duty truck sales increased $151 million primarily due to higher demand in North American heavy-duty truck markets with increased shipments of 39 percent.
Off-highway sales increased $111 million primarily due to improved demand in global construction markets, with increased international unit shipments of 48 percent primarily in China and Western Europe.
Medium-duty truck and bus sales increased $108 million primarily due to higher demand in North American medium-duty truck markets with increased engine shipments of 41 percent.
Light-duty automotive sales increased $107 million primarily due to higher sales to Chrysler and higher sales of light commercial vehicles.
Total on-highway-related sales for the three months ended October 1, 2017, were 79 percent of total engine segment sales, versus 80 percent for the comparable period in 2016.
Engine segment sales for the nine months ended October 1, 2017, increased $829 million versus the comparable period in 2016. The following were the primary drivers:
Off-highway sales increased $261 million primarily due to improved demand in global industrial markets, especially in international construction markets, with increased unit shipments of 52 percent primarily in China and Australia.
Heavy-duty truck sales increased $232 million primarily due to higher demand in North American heavy-duty truck markets with increased shipments of 14 percent.
Medium-duty truck and bus sales increased $204 million primarily due to higher demand in North American medium-duty truck markets with increased engine shipments of 24 percent.
Light-duty automotive sales increased $132 million primarily due to higher sales to Chrysler and higher sales of light commercial vehicles, partially offset by lower sales to Nissan.
Total on-highway-related sales for the nine months ended October 1, 2017, were 79 percent of total engine segment sales, versus 81 percent for the comparable period in 2016.
EBIT
Engine segment EBIT for the three months ended October 1, 2017, increased $140 million versus the comparable period in 2016 primarily due to the absence of a loss contingency recorded in the third quarter of 2016 and higher gross margin, partially offset by higher research, development and engineering expenses and selling, general and administrative expenses.
Engine segment EBIT for the nine months ended October 1, 2017, increased $243 million versus the comparable period in 2016 primarily due to the absence of a loss contingency recorded in the second and third quarters of 2016, improved gross margin and increased equity, royalty and interest income from investees, partially offset by higher selling, general and administrative expenses and higher research, development and engineering expenses. Major components of EBIT and related changes to EBIT and EBIT as a percentage of sales were as follows:

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