Cummins Reports Earnings of $1.09 Per Share for the First Quarter.Business Editors COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--April 13, 2000 As anticipated last week at its annual shareholders meeting, Cummins This article is about the diesel engine manufacturer. For other uses, see Cummins (disambiguation). Cummins Inc. (NYSE: CMI) is a maker of diesel and natural gas engines whose corporate headquarters is located in Columbus, Indiana. Engine Co. Inc. (NYSE NYSE See: New York Stock Exchange :CUM) today reported first-quarter earnings of $1.09 per share, or $42 million profit after taxes, on sales of $1.65 billion. This compares to the first quarter of 1999, when Cummins reported earnings of 63 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , or $24 million profit after taxes, on sales of $1.5 billion. "Our net earnings were up 75 percent compared to the first quarter of last year, reflecting strength across most of our markets and regions except the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. heavy-duty heav·y-dut·y adj. Made to withstand hard use or wear. heavy-duty Adjective made to withstand hard wear, bad weather, etc. Adj. 1. truck market, where, as we have indicated, we are seeing a decrease in demand," said Chairman and Chief Executive Officer Tim Solso. "Our power generation, filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids , construction, marine, bus, pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their truck, and international heavy-duty truck markets were all up. Delivering these earnings in the face of the decrease in the North American heavy-duty truck market reflects our continuing diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. ." Engine Business Revenues for the engine business were $1.05 billion, up 5 percent from the first quarter of 1999. Heavy-duty truck sales of $415 million were up slightly compared to the first quarter of 1999, with a 9 percent decrease in unit shipments to the North American heavy-duty truck market. In the medium-duty truck market, sales of $112 million were 13 percent lower than a year ago, due to lower sales in the U.S. and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Sales to the bus and light commercial vehicle markets were $249 million, up 14 percent from the year-ago quarter, reflecting strong sales in the bus market, and shipments of 30,000 engines to DaimlerChrysler for the Dodge Ram
The Ram is a full-size pickup truck from Chrysler LLC's Dodge brand. The name was first used in 1981 on the redesigned Ram and Power Ram, though it came from the hood ornament used on pickup truck. Sales of $269 million to agriculture, construction, mining, marine, and other industrial markets were up 12 percent compared to the year-ago quarter, reflecting increased demand in all regions. The engine business reported earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income of $28 million, or 2.7 percent of sales, compared to the first quarter of last year, when it reported earnings before interest and taxes of $27 million, or 2.7 percent of sales. Power Generation Business Power generation sales of $329 million continued to be strong, up $78 million dollars or 31 percent from the year ago quarter, reflecting continued strong demand for standby power Standby power, also called Vampire power, refers to the electric power consumed by electronic appliances in a standby mode. A very common "electricity vampire" is a power adaptor built on a plug with no power switch. in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and increases in the rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. market. Earnings before interest and taxes for the quarter were $23 million, or 7.0 percent of sales, compared to the first quarter of last year, when it reported earnings before interest and taxes of $2 million, or 0.8 percent of sales. Filtration Business and Other Sales of filtration and other products of $274 million were up 8 percent from the first quarter of 1999, reflecting increased sales across a broad range of markets worldwide. For the group, earnings before interest and taxes for the quarter were $30 million, or 10.9 percent of sales, compared to the first quarter of last year, when it reported earnings before interest and taxes of $26 million, or 10.2 percent of sales. Cummins, headquartered in Columbus, Ind., is the world's largest producer of diesel engines above 200 horsepower horsepower, unit of power in the English system of units. It is equal to 33,000 foot-pounds per minute or 550 foot-pounds per second or approximately 746 watts. . The company provides products and services for customers in markets worldwide for engines, power generation, and filtration. In 1999, Cummins reported record sales of $6.6 billion. Press releases by fax may be requested by calling News on Demand at 888-329-2305. Cummins' new website on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the can be found at www.cummins.com. Certain information in this press release is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and involves risks and uncertainties, including general economic and competitive conditions that could significantly affect expected results.
Cummins Engine Company, Inc.
(Millions, except per share amounts)
For The First Quarter Ended March 26, 2000 March 28, 1999
--------------------------- -------------- --------------
Net sales $1,648 $1,505
Earnings before interest and taxes 81 55
Net earnings 42 24
Basic earnings per share $ 1.09 $ .63
Diluted earnings per share 1.09 .63
Weighted-average number of shares
for EPS:
Basic 38.2 38.5
Diluted 38.3 38.5
Cummins Engine Company, Inc.
Consolidated Statement Of Earnings
Unaudited
First Quarter Fourth Quarter
------------- --------------
Millions, except per
share amounts 2000 1999 1999
-------------------- ---- ---- ----
Net sales $1,648 $1,505 $1,836
Cost of goods sold 1,313 1,204 1,451
------ ------ ------
Gross profit 335 301 385
Selling and administrative
expenses 194 178 211
Research and engineering
expenses 59 54 64
Net (income) expense from
joint ventures and alliances
(1) 7 8
Interest expense 19 19 19
Other expense (income), net 2 7 (5)
Restructuring and other
non-recurring charges - - 60
------ ------ ------
Earnings before income taxes
62 36 28
Provision for income taxes 17 10 1
Minority interest 3 2 2
------ ------ ------
Net earnings $ 42 $ 24 $ 25
------ ------ ------
------ ------ ------
Basic earnings per share $ 1.09 $ .63 $ .65
Diluted earnings per share 1.09 .63 .65
Average number of shares:
Basic EPS 38.2 38.5 38.1
Diluted EPS 38.3 38.5 38.4
Cash dividends declared
per share $ .30 $ .275 $ .30
Cummins Engine Company, Inc.
Consolidated Statement Of Financial Position
Unaudited
Millions, except per share amounts Mar. 26, 2000 Dec. 31, 1999
---------------------------------- ------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 68 $ 74
Receivables 1,159 1,026
Inventories 840 787
Other current assets 283 293
------ ------
2,350 2,180
Investments and other assets 335 274
Property, plant and equipment less
accumulated depreciation
of $1,533 and $1,490 1,617 1,630
Goodwill, net of amortization
of $30 and $28 362 364
Other intangibles, deferred taxes
and deferred charges 251 249
------ ------
Total assets $4,915 $4,697
------ ------
------ ------
Liabilities and shareholders' investment
Current liabilities:
Loans payable $ 66 $ 113
Current maturities of long-term debt 9 10
Accounts payable 523 411
Other current liabilities 774 780
------ ------
1,372 1,314
------ ------
Long-term debt 1,227 1,092
------ ------
Other liabilities 794 788
------ ------
Minority interest 78 74
------ ------
Shareholders' investment:
Common stock, $2.50 par value,
48.7 and 48.3 shares issued 122 121
Additional contributed capital 1,140 1,129
Retained earnings 790 760
Accumulated other comprehensive income (124) (109)
Common stock in treasury, at cost,
7.2 and 6.8 shares (290) (274)
Common stock held in trust for
employee benefit plans, 3.4 shares (161) (163)
Unearned compensation (ESOP) (33) (35)
------ ------
1,444 1,429
------ ------
Total liabilities and shareholders'
investment $4,915 $4,697
------ ------
------ ------
Cummins Engine Company, Inc.
Consolidated Statement Of Cash Flows
Unaudited
First Quarter Ended
-------------------
Millions March 26, 2000 March 28, 1999
-------- -------------- --------------
Cash flows from operating activities:
Net earnings $ 42 $ 24
----- -----
Adjustments to reconcile net
earnings to net cash from
operating activities:
Depreciation and amortization 57 56
Restructuring actions (2) (5)
Accounts receivable (141) (130)
Inventories (42) (2)
Accounts payable and accrued
expenses 100 95
Income taxes payable (5) (5)
Equity in losses of joint
ventures and alliances 2 11
Other (2) (12)
----- -----
Total adjustments (33) 8
----- -----
Net cash provided by operating
activities 9 32
----- -----
Cash flows from investing activities:
Property, plant and equipment:
Additions (31) (37)
Disposals 7 4
Investments in joint ventures
and alliances (18) (19)
Acquisition and disposition of
businesses (35) 7
Other - (1)
----- -----
Net cash used in investing activities (77) (46)
----- -----
Net cash flows used in
operating and investing activities (68) (14)
----- -----
Cash flows from financing activities:
Proceeds from borrowings 138 88
Payments on borrowings (4) (11)
Net payments under credit agreements (46) (43)
Repurchases of common stock (16) -
Dividend payments (12) (12)
Other 2 (1)
----- -----
Net cash provided by financing
activities 62 21
----- -----
Net change in cash and cash equivalents (6) 7
Cash and cash equivalents at the
beginning of the year 74 38
----- -----
Cash and cash equivalents at the end of
the quarter $ 68 $ 45
----- -----
----- -----
Cummins Engine Co., Inc.
Segment Information
Unaudited
Operating segment information is as follows:
Power Filtration
Millions Engine Generation And Other Total
-------- ------ ---------- --------- -----
First Quarter
Ended March 26, 2000
--------------------
Net sales $1,045 $ 329 $ 274 $1,648
Earnings before interest
and income taxes 28 23 30 81
Net assets 1,108 565 854 2,527
First Quarter Ended
March 28, 1999
-------------------
Net sales $1,000 $ 251 $ 254 $1,505
Earnings before interest
and income taxes 27 2 26 55
Net assets 976 523 799 2,298
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