News Release


Cummins Announces Second Quarter 2015 Results
  • Second quarter revenues of $5.0 billion, EBIT of 14.4 percent of sales
  • Full year revenue expected to grow between 2 and 4 percent and EBIT to be in the range of 13.5 to 14.0 percent of sales

COLUMBUS, Ind.--(BUSINESS WIRE)--Jul. 28, 2015-- Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2015. Second quarter revenue of $5.0 billion increased 4 percent from the same quarter in 2014. The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America. Currency negatively impacted revenues by 4 percent compared to last year, primarily due to a stronger US dollar.

Revenues in North America increased 12 percent while international sales declined by 6 percent. Within international markets, sales in Brazil fell the most due to the weak economy.

Earnings before interest and taxes (EBIT) increased to $721 million for the second quarter or 14.4 percent of sales, up from $657 million or 13.6 percent of sales a year ago.

Net income attributable to Cummins grew 6 percent in the second quarter to $471 million ($2.62 per diluted share), compared to $446 million ($2.43 per diluted share) in the second quarter of 2014. The tax rate in the second quarter of 2015, including discrete items, was 29.5 percent.

“We delivered strong results in the second quarter, despite challenging economic conditions in a number of international markets, and we increased cash returned to shareholders,” said Cummins Chairman and CEO Tom Linebarger. “Earnings improved as a result of good performance by our manufacturing and supply chain organizations and solid execution on material cost reduction initiatives. We returned $517 million to shareholders in the form of dividends and share repurchases in the second quarter and we recently announced a 25 percent increase in our quarterly dividend.”

Based on the current forecast, Cummins expects full year 2015 revenues to grow between 2 and 4 percent, and EBIT to be in the range of 13.5 to 14.0 percent of sales.

Other recent highlights:

  • For the ninth consecutive year, Cummins was named one of the Top 50 Companies for Diversity by Diversity Inc.
  • The Company announced new environmental sustainability goals and pledged to reach an annual reduction of 3.5 million metric tons of carbon dioxide (CO2) by 2020, which equates to 350 million gallons of fuel.
  • John Wall, Cummins’ Vice President – Chief Technical Officer, was honored by the California Air Resources Board with the Haagen-Smit Clean Air Award, which recognizes outstanding lifetime achievement in air-quality research, science and technology.
  • For the fourth consecutive year, Cummins was recognized as a Top 25 Supply Chain company by Gartner.
  • Cummins announced that John Wall, Vice President – Chief Technical Officer, will be retiring after nearly 30 years with the Company and that Jennifer Rumsey, Vice President of Engineering for Cummins’ Engine Business, will take Wall’s place.
  • Cummins announced a 25 percent increase in its quarterly dividend.

Second quarter 2015 detail (all comparisons to same period in 2014)

Engine Segment

  • Sales - $2.8 billion, up 2 percent.
  • Segment EBIT - $341 million, or 12.2 percent of sales, compared to $311 million or 11.3 percent of sales.
  • Strong demand in North American truck and bus markets was partially offset by weaker demand in global industrial markets and lower truck demand in Brazil.

Distribution Segment

  • Sales - $1.5 billion, up 21 percent, down 6 percent excluding acquisitions.
  • Segment EBIT - $113 million, or 7.6 percent of sales, compared to $126 million or 10.2 percent of sales.
  • Currency movements negatively impacted sales by 6 percent.
  • Results in the second quarter of 2014 included a gain of $14 million related to the acquisition of distributors in North America.

Components Segment

  • Sales - $1.4 billion, up 9 percent.
  • Segment EBIT - $223 million, or 16.0 percent of sales, compared to $185 million or 14.5 percent of sales.
  • Stronger demand in on-highway markets in North America, Europe, and China more than offset weakness in Brazil.

Power Generation Segment

  • Sales - $747 million, up 1 percent.
  • Segment EBIT - $57 million, or 7.6 percent of sales, compared to $61 million, or 8.2 percent of sales.
  • Increased international sales in the Middle East, Asia Pacific and India more than offset lower sales in North America and a 4 percent reduction in revenues due to currency movements.

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 54,600 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 7,200 dealer locations. Cummins earned $1.65 billion on sales of $19.2 billion in 2014. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at www.twittter.com/cummins and on YouTube at www.youtube/cumminsinc.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward looking statements include, without limitation, statements relating to our plans and expectations for our revenues for the full year of 2015. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: the adoption and implementation of global emission standards; the price and availability of energy; the pace of infrastructure development; increasing global competition among our customers; general economic, business and financing conditions; governmental action; changes in our customers’ business strategies; competitor pricing activity; expense volatility; labor relations; and other risks detailed from time to time in our Securities and Exchange Commission filings, including particularly in the Risk Factors section of our 2014 Annual Report on Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBIT is a non-GAAP measure used in this release, and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBIT is a measure used internally to assess the performance of the operating units.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EST. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com . Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

 
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)
 
Three months ended
In millions, except per share amounts

June 28,
2015

   

June 29,
2014

NET SALES $ 5,015 $ 4,835
Cost of sales 3,683   3,630  
GROSS MARGIN 1,332 1,205
 
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 537 513
Research, development and engineering expenses 166 179
Equity, royalty and interest income from investees 94 105
Other operating (expense) income, net   (6 )
OPERATING INCOME 723 612
 
Interest income 6 6
Interest expense 17 15
Other (expense) income, net (8 ) 39  
INCOME BEFORE INCOME TAXES 704 642
 
Income tax expense 208   170  
CONSOLIDATED NET INCOME 496 472
 
Less: Net income attributable to noncontrolling interests 25   26  
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 471   $ 446  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 2.63 $ 2.44
Diluted $ 2.62 $ 2.43
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 179.2 182.8
Diluted 179.6 183.2
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.78 $ 0.625

___________________________________________________________

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (a)

 
Six months ended
In millions, except per share amounts

June 28,
2015

   

June 29,
2014

NET SALES $ 9,724 $ 9,241
Cost of sales 7,197   6,937  
GROSS MARGIN 2,527 2,304
 
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses 1,054 998
Research, development and engineering expenses 361 369
Equity, royalty and interest income from investees 162 195
Other operating (expense) income, net (3 ) (7 )
OPERATING INCOME 1,271 1,125
 
Interest income 11 11
Interest expense 31 32
Other income, net 1   49  
INCOME BEFORE INCOME TAXES 1,252 1,153
 
Income tax expense 352   323  
CONSOLIDATED NET INCOME 900 830
 
Less: Net income attributable to noncontrolling interests 42   46  
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 858   $ 784  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic $ 4.77 $ 4.27
Diluted $ 4.76 $ 4.26
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 179.9 183.5
Diluted 180.3 183.9
 
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 1.56 $ 1.25

___________________________________________________________

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

     
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
 
In millions, except par value

June 28,
2015

December 31,
2014

ASSETS
Current assets
Cash and cash equivalents $ 1,760 $ 2,301
Marketable securities 89   93  
Total cash, cash equivalents and marketable securities 1,849 2,394
Accounts and notes receivable, net 3,422 2,946
Inventories 2,986 2,866
Prepaid expenses and other current assets 746   849  
Total current assets 9,003   9,055  
Long-term assets
Property, plant and equipment 7,151 7,123
Accumulated depreciation (3,498 ) (3,437 )
Property, plant and equipment, net 3,653 3,686
Investments and advances related to equity method investees 995 981
Goodwill 473 479
Other intangible assets, net 339 343
Prepaid pensions 784 637
Other assets 631   595  
Total assets $ 15,878   $ 15,776  
 
LIABILITIES
Current liabilities
Accounts payable (principally trade) $ 1,974 $ 1,881
Loans payable 70 86
Current portion of accrued product warranty 405 363
Accrued compensation, benefits and retirement costs 432 508
Deferred revenue 402 401
Other accrued expenses 739 759
Current maturities of long-term debt 31   23  
Total current liabilities 4,053   4,021  
Long-term liabilities
Long-term debt 1,576 1,589
Postretirement benefits other than pensions 351 369
Pensions 291 289
Other liabilities and deferred revenue 1,393   1,415  
Total liabilities $ 7,664   $ 7,683  
 
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued $ 2,164 $ 2,139
Retained earnings 10,123 9,545
Treasury stock, at cost, 43.7 and 40.1 shares (3,350 ) (2,844 )
Common stock held by employee benefits trust, at cost, 1.0 and 1.1 shares (12 ) (13 )
Accumulated other comprehensive loss (1,071 ) (1,078 )
Total Cummins Inc. shareholders’ equity 7,854 7,749
Noncontrolling interests 360   344  
Total equity $ 8,214   $ 8,093  

Total liabilities and equity

$ 15,878   $ 15,776  

___________________________________________________________

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
 
Six months ended
In millions

June 28,
2015

 

June 29,
2014

CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $ 900 $ 830
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization 254 217
Deferred income taxes (63 ) (88 )
Equity in income of investees, net of dividends (68 ) (108 )
Pension contributions in excess of expense (122 ) (127 )
Other post-retirement benefits payments in excess of expense (15 ) (14 )
Stock-based compensation expense 17 21
Translation and hedging activities 27 (9 )
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable (426 ) (321 )
Inventories (127 ) (223 )
Other current assets 18 4
Accounts payable 97 289
Accrued expenses (21 ) 120
Changes in other liabilities and deferred revenue 133 116
Other, net (35 ) (6 )
Net cash provided by operating activities 569   701  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (247 ) (245 )
Investments in internal use software (22 ) (26 )
Investments in and advances to equity investees (17 ) (11 )
Acquisitions of businesses, net of cash acquired (15 ) (193 )
Investments in marketable securities—acquisitions (173 ) (179 )
Investments in marketable securities—liquidations 155 179
Cash flows from derivatives not designated as hedges 5 4
Other, net 14   8  
Net cash used in investing activities (300 ) (463 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 12 17
Payments on borrowings and capital lease obligations (31 ) (39 )
Net payments under short-term credit agreements (10 ) (48 )
Distributions to noncontrolling interests (14 ) (32 )
Dividend payments on common stock (280 ) (229 )
Repurchases of common stock (514 ) (430 )
Other, net 8   5  
Net cash used in financing activities (829 ) (756 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 19   38  
Net decrease in cash and cash equivalents (541 ) (480 )
Cash and cash equivalents at beginning of year 2,301   2,699  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,760   $ 2,219  

___________________________________________________________

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

         
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
 
In millions Engine Distribution Components

Power
Generation

Non-
segment
Items (1)

Total
Three months ended June 28, 2015
External sales $ 2,058 $ 1,487 $ 1,017 $ 453 $ $ 5,015
Intersegment sales 739   8   380   294   (1,421 )  
Total sales 2,797 1,495 1,397 747 (1,421 ) 5,015
Depreciation and amortization(2) 60 25 28 13 126
Research, development and engineering expenses 91 3 57 15 166
Equity, royalty and interest income from investees 57 21 8 8 94
Interest income 3 1 1 1 6
Segment EBIT 341 113 223 57 (13 ) 721
 
Segment EBIT as a percentage of total sales 12.2 % 7.6 % 16.0 % 7.6 % 14.4 %
 
Three months ended June 29, 2014
External sales $ 2,178 $ 1,229 $ 953 $ 475 $ $ 4,835
Intersegment sales 566   9   327   268   (1,170 )  
Total sales 2,744 1,238 1,280 743 (1,170 ) 4,835
Depreciation and amortization(2) 52 20 26 13 111
Research, development and engineering expenses 105 3 53 18 179
Equity, royalty and interest income from investees 45 42 9 9 105
Interest income 4 1 1 6
Segment EBIT 311 126

(3)

185 61 (26 ) 657

 

Segment EBIT as a percentage of total sales 11.3 % 10.2 % 14.5 % 8.2 % 13.6 %

 

                       

(1)

 

Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 28, 2015 and June 29, 2014.

(2)

 

Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense."

(3)

 

Distribution segment EBIT included gains of $14 million on the fair value adjustments resulting from the acquisitions of the controlling interests in North American distributors for the three months ended June 29, 2014.
 
In millions   Engine   Distribution Components  

Power
Generation

 

Non-
segment
Items (1)

  Total
Six months ended June 28, 2015
External sales $ 3,947 $ 2,956 $ 1,948 $ 873 $ $ 9,724
Intersegment sales 1,446   15   748   554   (2,763 )  
Total sales 5,393 2,971 2,696 1,427 (2,763 ) 9,724
Depreciation and amortization(2) 118 52 54 29 253
Research, development and engineering expenses 205 6 118 32 361
Equity, royalty and interest income from investees 87 41 17 17 162
Interest income 5 2 2 2 11
Segment EBIT 594 201 418 106 (36 ) 1,283
 
Segment EBIT as a percentage of total sales 11.0 % 6.8 % 15.5 % 7.4 % 13.2 %
 
Six months ended June 29, 2014
External sales $ 4,268 $ 2,171 $ 1,875 $ 927 $ $ 9,241
Intersegment sales 1,039   17   635   455   (2,146 )  
Total sales 5,307 2,188 2,510 1,382 (2,146 ) 9,241
Depreciation and amortization(2) 103 36 52 25 216
Research, development and engineering expenses 221 5 106 37 369
Equity, royalty and interest income from investees 77 83 18 17 195
Interest income 6 1 2 2 11
Segment EBIT 580 202 (3) 352 86 (35 ) 1,185
 
Segment EBIT as a percentage of total sales 10.9 % 9.2 % 14.0 % 6.2 % 12.8 %
                         

(1)

 

Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 28, 2015 and June 29, 2014.

(2)

 

Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $1 million and $1 million for the six months ended June 28, 2015 and June 29, 2014, respectively.

(3)

 

Distribution segment EBIT included gains of $20 million on the fair value adjustments resulting from the acquisitions of the controlling interests in North American distributors for the six months ended June 29, 2014.
 

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:

   
Three months ended Six months ended
In millions

June 28,
2015

 

June 29,
2014

June 28,
2015

 

June 29,
2014

Total EBIT $ 721 $ 657 $ 1,283 $ 1,185
Less: Interest expense 17   15   31   32
Income before income taxes $ 704   $ 642   $ 1,252   $ 1,153
 

CUMMINS INC. AND SUBSIDIARIES
SELECTED FOOTNOTE DATA
(Unaudited)

NOTE 1. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the reporting periods was as follows:

  Three months ended   Six months ended
In millions

June 28,
2015

 

June 29,
2014

June 28,
2015

 

June 29,
2014

Distribution Entities
North American distributors $ 8 $ 30 $ 18 $ 62
Komatsu Cummins Chile, Ltda. 8 8 15 14
All other distributors 1 1 2
Manufacturing Entities
Dongfeng Cummins Engine Company, Ltd. 15 22 29 36
Beijing Foton Cummins Engine Co., Ltd. (Light-duty) 15 8 23 14
Chongqing Cummins Engine Company, Ltd. 11 15 23 26
Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty) 7 (7 ) 6 (13 )
All other manufacturers 21   19   28   34  
Cummins share of net income 85 96 143 175
Royalty and interest income 9   9   19   20  
Equity, royalty and interest income from investees $ 94   $ 105   $ 162   $ 195  
 

NOTE 2. INCOME TAXES

The effective tax rate for the three and six month periods ended June 28, 2015, was 29.5 percent and 28.1 percent, respectively. The six month tax rate included an $18 million discrete tax benefit to reflect the release of reserves for uncertain tax positions related to a favorable federal audit settlement.

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding special items

We believe this is a useful measure of our operating performance for the periods presented as it illustrates our operating performance without regard to special items including tax adjustments. This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data. The following table reconciles net income attributable to Cummins Inc. to net income attributable to Cummins Inc. excluding special items for the following periods:

    Six months ended
June 28, 2015   June 29, 2014
In millions Net Income   Diluted EPS Net Income   Diluted EPS
Net income attributable to Cummins Inc. $ 858 $ 4.76 $ 784 $ 4.26
Less
Tax items 18   0.10    
Net income attributable to Cummins Inc. excluding special items $ 840   $ 4.66   $ 784   $ 4.26
 

Earnings before interest, taxes and noncontrolling interests

We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries (EBIT). We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. This measure is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of EBIT to “Net income attributable to Cummins Inc.,” for each of the applicable periods:

  Three months ended   Six months ended
In millions

June 28, 2015

  June 29, 2014 June 28, 2015   June 29, 2014
Earnings before interest expense and income taxes $ 721   $ 657   $ 1,283   $ 1,185  
 
EBIT as a percentage of net sales 14.4 % 13.6 % 13.2 % 12.8 %
 
Less
Interest expense 17 15 31 32
Income tax expense 208   170   352   323  
Consolidated net income 496   472   900   830  
 
Less
Net income attributable to noncontrolling interests 25   26   42   46  
Net income attributable to Cummins Inc. $ 471   $ 446   $ 858   $ 784  
 
Net income attributable to Cummins Inc. as a percentage of net sales 9.4 % 9.2 % 8.8 % 8.5 %
 

CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)

Engine Segment Net Sales by Market

In the first quarter of 2015, our Engine segment reorganized its reporting structure to include the following markets: heavy-duty truck, medium-duty truck and bus, light-duty automotive (pickup and light commercial vehicle), industrial and stationary power. Sales by market for our Engine segment by business (including 2014 and 2013 reorganized balances) were as follows:

2015          
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 757 $ 875 $ $ $ 1,632
Medium-duty truck and bus 608 674 1,282
Light-duty automotive 381 354 735
Industrial 616 624 1,240
Stationary power 234   270       504
Total sales $ 2,596   $ 2,797   $   $   $ 5,393
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Heavy-duty truck $ 718 $ 769 $ 801 $ 784 $ 3,072
Medium-duty truck and bus 575 605 599 652 2,431
Light-duty automotive 391 392 396 388 1,567
Industrial 669 739 768 775 2,951
Stationary power 210   239   252   240   941
Total sales $ 2,563   $ 2,744   $ 2,816   $ 2,839   $ 10,962
 
2013
In millions YTD
Heavy-duty truck $ 2,618
Medium-duty truck and bus 2,064
Light-duty automotive 1,465
Industrial 2,921
Stationary power 945  
Total sales $ 10,013  
 

Unit shipments by engine classification (including unit shipments to Power Generation):

2015          
 
Units Q1 Q2 Q3 Q4 YTD
Mid-range 112,400 120,000 232,400
Heavy-duty 28,700 32,800 61,500
High-horsepower 3,500   3,700       7,200
Total units 144,600   156,500       301,100
 
2014
Units Q1 Q2 Q3 Q4 YTD
Mid-range 118,900 118,700 117,700 115,900 471,200
Heavy-duty 28,800 30,300 32,300 30,700 122,100
High-horsepower 3,400   3,900   3,900   3,600   14,800
Total units 151,100   152,900   153,900   150,200   608,100
 
Distribution Segment Sales by Business
         
2015
In millions Q1 Q2 Q3 Q4 YTD
Parts and filtration $ 573 $ 598 $ $ $ 1,171
Engines 321 318 639
Power generation 298 272 570
Service 284   307       591
Total sales $ 1,476   $ 1,495   $   $   $ 2,971
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Parts and filtration $ 382 $ 461 $ 491 $ 590 $ 1,924
Engines 174 249 270 368 1,061
Power generation 193 278 279 413 1,163
Service 201   250   252   323   1,026
Total sales $ 950   $ 1,238   $ 1,292   $ 1,694   $ 5,174
 

Component Segment Sales by Business

         
2015
In millions Q1 Q2 Q3 Q4 YTD
Emission Solutions $ 613 $ 679 $ $ $ 1,292
Turbo Technologies 301 307 608
Filtration 255 266 521
Fuel systems 130   145       275
Total sales $ 1,299   $ 1,397   $   $   $ 2,696
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Emission Solutions $ 543 $ 582 $ 598 $ 620 $ 2,343
Turbo Technologies 313 307 297 305 1,222
Filtration 265 275 268 267 1,075
Fuel systems 109   116   124   129   478
Total sales $ 1,230   $ 1,280   $ 1,287   $ 1,321   $ 5,118
 

Power Generation Segment Sales by Business

In the first quarter of 2015, our Power Generation segment reorganized its reporting structure to include the following businesses: power systems, alternators and power solutions. Sales for our Power Generation segment by business (including 2014 and 2013 reorganized balances) were as follows:

2015          
In millions Q1 Q2 Q3 Q4 YTD
Power systems $ 543 $ 611 $ $ $ 1,154
Alternators 98 92 190
Power solutions 39   44       83
Total sales $ 680   $ 747   $   $   $ 1,427
 
2014
In millions Q1 Q2 Q3 Q4 YTD
Power systems $ 510 $ 586 $ 598 $ 606 $ 2,300
Alternators 105 126 115 103 449
Power solutions 24   31   41   51   147
Total sales $ 639   $ 743   $ 754   $ 760   $ 2,896
 
2013
In millions YTD
Power systems $ 2,381
Alternators 496
Power solutions 154  
Total sales $ 3,031  

Source: Cummins Inc.

Cummins Inc.
Carole Casto, Executive Director - Corporate Communications, 317-610-2480
carole.casto@cummins.com