UNITED STATES

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, DC  20549

  

FORM 8-K

  

CURRENT REPORT

  

PURSUANT TO SECTION 13 OR 15(d) OF THE

  SECURITIES EXCHANGE ACT OF 1934

  

Date of Report: July 30, 2009

 

  CUMMINS INC.

 (Exact name of registrant as specified in its charter)

  

Indiana

 (State or other Jurisdiction of

 Incorporation)

1-4949

 (Commission File Number)

35-0257090

 (I.R.S. Employer Identification

  No.)

 

500 Jackson Street

 P. O. Box 3005

 Columbus, IN  47202-3005

 (Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code:  (812) 377-5000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):

  

[  ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.02.  Results of Operations and Financial Condition.

On July 30, 2009, Cummins Inc. issued a press release regarding its release of first quarter results.  

 

Item 7.01.  Regulation FD Disclosure

 

The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 7.01, "Regulation FD Disclosure."

 

On July 30, 2009, Cummins Inc. ("Cummins," "the Company," "the registrant," "we," "our," or "us") issued the attached press release reporting its financial results for the second quarter of 2009.  A copy of Cummins' press release is attached hereto as Exhibit 99 and hereby incorporated by reference.

  

Item 9.01. Financial Statements and Exhibits.

 

 

(d)

The following exhibit is furnished herewith:

  

99-Press Release dated July 30, 2009

 

 

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 30, 2009

  

CUMMINS INC.

 

 

 

 

/s/ Marsha L. Hunt

 ______________________________

Marsha L. Hunt

 Vice President - Corporate Controller

 (Principal Accounting Officer)

 

 



 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (a)

 

 

 

Three months ended

 

 

 

June 28,

 

March 29,

 

June 29,

 

In millions (except per share amounts)

 

2009

 

2009

 

2008

 

NET SALES

 

$

2,431

 

$

2,439

 

$

3,887

 

Cost of sales

 

1,983

 

1,994

 

3,008

 

GROSS MARGIN

 

448

 

445

 

879

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES AND INCOME

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

287

 

300

 

370

 

Research, development and engineering expenses

 

79

 

85

 

104

 

Equity, royalty and interest income from investees

 

57

 

33

 

69

 

Restructuring charges

 

7

 

66

 

 

Other operating (expense) income, net

 

(11

)

2

 

(6

)

 

 

 

 

 

 

 

 

OPERATING INCOME

 

121

 

29

 

468

 

 

 

 

 

 

 

 

 

Interest income

 

1

 

2

 

4

 

Interest expense

 

10

 

7

 

12

 

Other (expense) income, net

 

(13

)

(3

)

(3

)

INCOME BEFORE INCOME TAXES

 

99

 

21

 

457

 

                    

 

 

 

 

 

 

 

Income tax expense

 

29

 

7

 

147

 

NET INCOME

 

70

 

14

 

310

 

 

 

 

 

 

 

 

 

Less: net income attributable to noncontrolling interests

 

14

 

7

 

17

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

56

 

$

7

 

$

293

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

0.04

 

$

1.50

 

Diluted

 

$

0.28

 

$

0.04

 

$

1.49

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

Basic

 

 

197.1

 

 

196.8

 

 

195.2

 

Diluted

 

 

197.4

 

 

197.0

 

 

196.6

 

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.175

 

$

0.175

 

$

0.125

 

 

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

 



 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (a)

 

 

 

Six months ended

 

 

 

June 28,

 

June 29,

 

In millions (except per share amounts)

 

2009

 

2008

 

NET SALES

 

$

4,870

 

$

7,361

 

Cost of sales

 

3,977

 

5,775

 

GROSS MARGIN

 

893

 

1,586

 

 

 

 

 

 

 

OPERATING EXPENSES AND INCOME

 

 

 

 

 

Selling, general and administrative expenses

 

587

 

721

 

Research, development and engineering expenses

 

164

 

207

 

Equity, royalty and interest income from investees

 

90

 

136

 

Restructuring charges

 

73

 

 

Other operating (expense) income, net

 

(9

)

(7

)

 

 

 

 

 

 

OPERATING INCOME

 

150

 

787

 

 

 

 

 

 

 

Interest income

 

3

 

10

 

Interest expense

 

17

 

23

 

Other (expense) income, net

 

(16

)

(13

)

INCOME BEFORE INCOME TAXES

 

120

 

761

 

                    

 

 

 

 

 

Income tax expense

 

36

 

249

 

NET INCOME

 

84

 

512

 

 

 

 

 

 

 

Less: net income attributable to noncontrolling interests

 

21

 

29

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

63

 

$

483

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

 

 

Basic

 

$

0.32

 

$

2.47

 

Diluted

 

$

0.32

 

$

2.46

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

 

 

197.0

 

 

195.1

 

Diluted

 

 

197.2

 

 

196.5

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.35

 

$

0.25

 

 

(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)

 

 

 

June 28,

 

December 31,

 

In millions (except par value)

 

2009

 

2008

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

534

 

 

$

426

 

 

Marketable securities

 

 

17

 

 

 

77

 

 

Accounts and notes receivable, net

 

 

1,725

 

 

 

1,782

 

 

Inventories

 

 

1,535

 

 

 

1,783

 

 

Deferred income taxes

 

 

364

 

 

 

347

 

 

Prepaid expenses and other current assets

 

 

198

 

 

 

298

 

 

Total current assets

 

 

4,373

 

 

 

4,713

 

 

Long-term assets

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

4,681

 

 

 

4,539

 

 

     Accumulated depreciation

 

 

(2,821

)

 

 

(2,698

)

 

     Property, plant and equipment, net

 

 

1,860

 

 

 

1,841

 

 

Investments and advances related to equity method investees

 

 

527

 

 

 

588

 

 

Goodwill

 

 

362

 

 

 

362

 

 

Other intangible assets, net

 

 

241

 

 

 

223

 

 

Deferred income taxes

 

 

499

 

 

 

491

 

 

Other assets

 

 

259

 

 

 

301

 

 

Total assets

 

$

8,121

 

 

$

8,519

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Current portion of long-term debt and loans payable

 

$

63

 

 

$

69

 

 

Accounts payable (principally trade)

 

 

773

 

 

 

1,009

 

 

Current portion of accrued product warranty

 

 

373

 

 

 

434

 

 

Accrued compensation, benefits and retirement costs

 

 

283

 

 

 

364

 

 

Other accrued expenses

 

 

622

 

 

 

763

 

 

Total current liabilities

 

 

2,114

 

 

 

2,639

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

617

 

 

 

629

 

 

Pensions

 

 

561

 

 

 

574

 

 

Postretirement benefits other than pensions

 

 

442

 

 

 

452

 

 

Other liabilities and deferred revenue

 

 

792

 

 

 

745

 

 

Total liabilities

 

 

4,526

 

 

 

5,039

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

 

 

 

 

 

Common stock, $2.50 par value, 500 shares authorized, 222.1 and 221.7 shares issued

 

 

1,796

 

 

 

1,793

 

 

Retained earnings

 

 

3,280

 

 

 

3,288

 

 

Treasury stock, at cost, 20.3 and 20.4 shares

 

 

(714

)

 

 

(715

)

 

Common stock held by employee benefits trust, at cost, 4.8 and 5.1 shares

 

 

(58

)

 

 

(61

)

 

Unearned compensation

 

 

(1

)

 

 

(5

)

 

Accumulated other comprehensive loss

 

 

 

 

 

 

 

 

 

Defined benefit postretirement plans

 

 

(794

)

 

 

(798

)

 

Other

 

 

(137

)

 

 

(268

)

 

Total accumulated other comprehensive loss

 

 

(931

)

 

 

(1,066

)

 

Total Cummins Inc. shareholders’ equity

 

 

3,372

 

 

 

3,234

 

 

Noncontrolling interests

 

 

223

 

 

 

246

 

 

Total equity

 

 

3,595

 

 

 

3,480

 

 

Total liabilities and equity

 

$

8,121

 

 

$

8,519

 

 

 

(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

 

 

 

June 28,

 

June 29,

 

In millions

 

2009

 

2008

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Net income

 

$

84

 

$

512

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Restructuring charges, net of cash payments

 

20

 

 

Depreciation and amortization

 

154

 

158

 

Deferred income taxes                                   

 

20

 

14

 

Equity in income of investees, net of dividends

 

60

 

(62

)

Pension expense, net of pension contributions

 

(15

)

(3

)

Other post-retirement benefits expense, net of cash payments

 

(16

)

(5

)

Stock-based compensation expense

 

12

 

17

 

Excess tax deficiencies (benefits) on stock-based awards

 

2

 

(12

)

Translation and hedging activities

 

51

 

8

 

Changes in current assets and liabilities, net of acquisitions and dispositions:

 

 

 

 

 

Accounts and notes receivable

 

86

 

(316

)

Inventories

 

282

 

(202

)

Other current assets

 

22

 

(16

)

Accounts payable

 

(253

)

172

 

Accrued expenses

 

(242

)

102

 

Changes in long-term liabilities

 

73

 

47

 

Other, net

 

(19

)

(8

)

Net cash provided by operating activities

 

321

 

406

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Capital expenditures

 

(139

)

(201

)

Investments in internal use software

 

(19

)

(36

)

Proceeds from disposals of property, plant and equipment

 

7

 

10

 

Investments in and advances (to) from equity investees

 

1

 

(41

)

Acquisition of businesses, net of cash acquired

 

(2

)

(76

)

Investments in marketable securities—acquisitions

 

(69

)

(158

)

Investments in marketable securities—liquidations

 

133

 

159

 

Cash flows from derivatives not designated as hedges

 

(21

)

(18

)

Other, net

 

 

5

 

Net cash used in investing activities

 

(109

)

(356

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Proceeds from borrowings

 

10

 

77

 

Payments on borrowings and capital lease obligations

 

(44

)

(101

)

Net borrowings under short-term credit agreements

 

(5

)

1

 

Distributions to noncontrolling interests

 

(10

)

(6

)

Dividend payments on common stock

 

(71

)

(51

)

Repurchases of common stock

 

 

(45

)

Excess tax (deficiencies) benefits on stock-based awards

 

(2

)

12

 

Other, net

 

3

 

2

 

Net cash used in financing activities

 

(119

)

(111

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

15

 

6

 

Net increase (decrease) in cash and cash equivalents

 

108

 

(55

)

Cash and cash equivalents at beginning of year

 

426

 

577

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

534

 

$

522

 

 

(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

 

 

Power Generation

 

 

Components

 

 

Distribution

 

 

Non-segment items(1)

 

 

Total

 

Three months ended June 28, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

$

1,133

 

 

$

481

 

 

$

355

 

 

$

462

 

 

$

 

 

$

2,431

 

Intersegment sales

173

 

 

129

 

 

147

 

 

1

 

 

(450

)

 

 

Total sales

1,306

 

 

610

 

 

502

 

 

463

 

 

(450

)

 

2,431

 

Depreciation and amortization(2)

45

 

 

11

 

 

17

 

 

4

 

 

 

 

77

 

Research, development and engineering expense

51

 

 

8

 

 

20

 

 

 

 

 

 

79

 

Equity, royalty and interest income from investees

17

 

 

6

 

 

4

 

 

30

 

 

 

 

57

 

Restructuring charges

 

 

 

 

 

 

 

 

7

 

 

7

 

Interest income

 

 

 

 

 

 

1

 

 

 

 

1

 

Segment EBIT

(4

)

 

41

 

 

(10

)

 

55

 

 

27

 

 

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 29, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

$

1,205

 

 

$

477

 

 

$

346

 

 

$

411

 

 

$

 

 

$

2,439

 

Intersegment sales

287

 

 

180

 

 

184

 

 

2

 

 

(653

)

 

 

Total sales

1,492

 

 

657

 

 

530

 

 

413

 

 

(653

)

 

2,439

 

Depreciation and amortization(2)

41

 

 

11

 

 

18

 

 

5

 

 

 

 

75

 

Research, development and engineering expense

58

 

 

8

 

 

19

 

 

 

 

 

 

85

 

Equity, royalty and interest (loss) income from investees

(3

)

 

5

 

 

1

 

 

30

 

 

 

 

33

 

Restructuring charges

 

 

 

 

 

 

 

 

66

 

 

66

 

Interest income

1

 

 

1

 

 

 

 

 

 

 

 

2

 

Segment EBIT

(16

)

 

69

 

 

1

 

 

58

 

 

(84

)

 

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 29, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

$

2,030

 

 

$

692

 

 

$

584

 

 

$

581

 

 

$

 

 

$

3,887

 

Intersegment sales

356

 

 

246

 

 

271

 

 

 

 

(873

)

 

 

Total sales

2,386

 

 

938

 

 

855

 

 

581

 

 

(873

)

 

3,887

 

Depreciation and amortization(2)

46

 

 

11

 

 

18

 

 

7

 

 

 

 

82

 

Research, development and engineering expense

70

 

 

10

 

 

24

 

 

 

 

 

 

104

 

Equity, royalty and interest income from investees

32

 

 

6

 

 

3

 

 

28

 

 

 

 

69

 

Interest income

2

 

 

1

 

 

1

 

 

 

 

 

 

4

 

Segment EBIT

221

 

 

115

 

 

77

 

 

68

 

 

(12

)

 

469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 28, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

$

2,338

 

 

$

958

 

 

$

701

 

 

$

873

 

 

$

 

 

$

4,870

 

Intersegment sales

460

 

 

309

 

 

331

 

 

3

 

 

(1,103

)

 

 

Total sales

2,798

 

 

1,267

 

 

1,032

 

 

876

 

 

(1,103

)

 

4,870

 

Depreciation and amortization(2)

86

 

 

22

 

 

35

 

 

9

 

 

 

 

152

 

Research, development and engineering expense

109

 

 

16

 

 

39

 

 

 

 

 

 

164

 

Equity, royalty and interest income from investees

14

 

 

11

 

 

5

 

 

60

 

 

 

 

90

 

Restructuring charges

 

 

 

 

 

 

 

 

73

 

 

73

 

Interest income

1

 

 

1

 

 

 

 

1

 

 

 

 

3

 

Segment EBIT

(20

)

 

110

 

 

(9

)

 

113

 

 

(57

)

 

137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 29, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

$

3,915

 

 

$

1,273

 

 

$

1,151

 

 

$

1,022

 

 

$

 

 

$

7,361

 

Intersegment sales

680

 

 

452

 

 

524

 

 

4

 

 

(1,660

)

 

 

Total sales

4,595

 

 

1,725

 

 

1,675

 

 

1,026

 

 

(1,660

)

 

7,361

 

Depreciation and amortization(2)

90

 

 

22

 

 

33

 

 

11

 

 

 

 

156

 

Research, development and engineering expense

140

 

 

20

 

 

47

 

 

 

 

 

 

207

 

Equity, royalty and interest income from investees

65

 

 

11

 

 

7

 

 

53

 

 

 

 

136

 

Interest income

5

 

 

2

 

 

2

 

 

1

 

 

 

 

10

 

Segment EBIT

415

 

 

193

 

 

114

 

 

117

 

 

(55

)

 

784

 

(1) Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses.  For the three and six months ended June 28, 2009, unallocated corporate expenses included restructuring charges of $7 million and $73 million and losses of $9 million and $3 million related to flood damages.  For the three months ended March 29, 2009, unallocated corporate expenses include restructuring charges of $66 million and a $6 million gain related to flood damage insurance recoveries.  For both the three and six months ended June 29, 2008, unallocated corporate expenses included losses of $6 million related to flood damages.

 

(2) Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as Interest expense.

 

 

 



CUMMINS INC. AND SUBSIDIARIES

RECONCILIATION OF SEGMENT INFORMATION

(Unaudited)

 

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

 

 

 

June 28,

 

March 29,

 

June 29,

 

June 28,

 

June 29,

 

In millions

 

2009

 

2009

 

2008

 

2009

 

2008

 

Segment EBIT

 

$

109

 

$

28

 

$

469

 

$

137

 

$

784

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

10

 

7

 

12

 

17

 

23

 

Income before income taxes

 

$

99

 

$

21

 

$

457

 

$

120

 

$

761

 

 

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

Earnings before interest, taxes, noncontrolling interests and restructuring charges

We define EBIT as earnings or loss 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.  Below is a reconciliation of EBIT, a non-GAAP financial measure, to consolidated net income attributable to Cummins Inc., for each of the applicable periods:

 

 

Three months ended

 

Six months ended

 

 

 

June 28,

 

March 29,

 

June 29,

 

 

June 28,

 

 

June 29,

 

In millions

 

2009

 

2009

 

2008

 

2009

 

2008

 

Earnings before interest expense, income taxes
   and restructuring charges
  $

116

  $

94

  $

469

  $

210

  $  

784

 
                                 
Earnings before interest expense, income taxes and
   restructuring charges as a percentage of sales
   

4.8

%  

3.9

%  

12.1

%   4.3 %    

10.7

%
Less:                                
    Restructuring charges    

7

   

66

   

   

73

     

 
                                 

Earnings before interest and income taxes

 

$

109

 

$

28

 

$

469

 

$

137

 

$

 

784

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT as a percentage of net sales

 

4.5

%

1.1

%

12.1

%

2.8

%

10.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

10

 

7

 

12

 

17

 

23

 

Income tax expense

 

29

 

7

 

147

 

36

 

249

 

Net income

 

70

 

14

 

310

 

84

 

512

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

14

 

7

 

17

 

21

 

29

 

Net income attributable to Cummins Inc.

 

$

56

 

$

7

 

$

293

 

$

63

 

$

 

483

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Cummins Inc.  as a percentage of net sales

 

2.3

%

0.3

%

7.5

%

1.3

%

6.6

%

 



 CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

 

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

We believe this is a useful measure of our operating performance for the period presented as it illustrates our operating performance without regard to restructuring.  This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America and may not be consistent with measures used by other companies.  It should be considered supplemental data.

 

Three months ended

 

Six months ended

 

 

June 28, 2009

 

June 28, 2009

 

In millions

Net Income

 

Diluted EPS

 

Net Income

 

Diluted EPS

 

Net income attributable to Cummins Inc. excluding restructuring charges

$

60

 

$

0.30

 

$

111

 

$

0.56

 

Less:

 

 

 

 

 

 

 

 

Restructuring charges, net(1)

4

 

0.02

 

48

 

0.24

 

Net income attributable to Cummins Inc.

$

56

 

$

0.28

 

$

63

 

$

0.32

 

(1) During the three and six months ended June 28, 2009, management approved and committed to undertake certain restructuring actions, which resulted in a pretax charge of $7 and $73 million, respectively.  These charges included employee-related liabilities for severance and benefits of approximately $8 million and $68 million and exit costs of approximately zero and $6 million, respectively.

 

SUPPLEMENTAL INFORMATION

In 2009, the Power Generation segment reorganized its reporting structure to include the following businesses: Commercial Products, Alternators, Commercial Projects, Power Electronics and Consumer.  Sales by quarter for our Power Generation segment by business for the years 2008 and 2007 were as follows:

 

 2008

 

Three months ended

 

Year ended

 

In millions

 

March 30, 2008

 

June 29, 2008

 

September 28, 2008

 

December 31, 2008

 

December 31, 2008

 

Commercial Products

 

$

444

 

$

555

 

$

559

 

$

558

 

$

2,116

 

Alternator

 

156

 

178

 

174

 

178

 

686

 

Commercial Projects

 

86

 

111

 

63

 

68

 

328

 

Power Electronics

 

27

 

31

 

35

 

39

 

132

 

Consumer

 

74

 

63

 

57

 

44

 

238

 

   Total sales

 

$

787

 

$

938

 

$

888

 

$

887

 

$

3,500

 

 

 2007

 

Three months ended

 

Year ended

 

In millions

 

April 1, 2007

 

July 1, 2007

 

September 30, 2007

 

December 31, 2007

 

December 31, 2007

 

Commercial Products

 

$

383

 

$

448

 

$

449

 

$

481

 

$

1,761

 

Alternator

 

132

 

156

 

163

 

172

 

623

 

Commercial Projects

 

45

 

44

 

49

 

81

 

219

 

Power Electronics

 

26

 

26

 

28

 

28

 

108

 

Consumer

 

89

 

95

 

87

 

78

 

349

 

   Total sales

 

$

675

 

$

769

 

$

776

 

$

840

 

$

3,060