Cummins reports record sales for 1995.--(BUSINESS WIRE)--Jan. 23, 1996-- -0-
CUMMINS ENGINE COMPANY, INC.
(Millions, Except Share Amounts)
For the Fourth Quarter Ended Dec. 31, Dec. 31,
1995 1994
Net sales $1,331 $1,277 Earnings before income taxes and the 61 82 restructuring charge Net earnings (a) 42 70 Earnings per share $1.05 $1.68 Weighted-average number of shares 40.2 41.7
For the Year Ended Dec. 31, Dec. 31,
1995 1994
Net sales $5,245 $4,737 Earnings before income taxes and the 295 294 restructuring charges Net earnings (a) 224 253 Earnings per share $5.52 $6.11 Weighted-average number of shares 40.7 41.4
(a) Included in net earnings in the fourth quarter of 1995 was a
restructuring chargeof $116 ($76 after tax). There also was a
release of a tax valuation reserve of $68. Net earnings for
1995 included restructuring charges of $118 ($77 after tax).
COLUMBUS, 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. .--Cummins Engine Co. Inc. (NYSE NYSE See: New York Stock Exchange :CUM) today reported 1995 sales of $5.2 billion, the highest in its history and 11 percent above its 1994 sales level of $4.7 billion. Earnings before taxes and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. were $295 million, compared to the prior year's results of $294 million. Net earnings were $224 million, or $5.52 per share, compared to $253 million, or $6.11 per share, in 1994. Net earnings in the fourth quarter of 1995 were $42 million, or $1.05 per share, on sales of $1.33 billion, compared to $70 million, or $1.68 per share, on sales of $1.28 billion in the fourth quarter of 1994. Excluding the effects of restructuring charges and a one-time tax credit, 1995 fourth-quarter net earnings would have been $49 million, or $1.20 per share. The company announced in October of 1995 that it was evaluating the consolidation and disposal of certain assets and planned to reduce its worldwide work force by approximately 2,000. The restructuring charges in 1995 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these actions were $118 million, or $77 million after taxes. In addition, the company recorded a one-time benefit in the fourth quarter of 1995 associated with the reversal of certain tax valuation reserves of $68 million. "We are pleased with our performance in 1995. However, we experienced softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in some of our markets during the second half of the year, which we are addressing through our product and market expansion programs and our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). efforts," stated Chairman and Chief Executive Officer Jim Henderson
"We launched several important products in 1995," noted Tim Solso, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Our upgraded heavy-duty `Plus' engines provide higher 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. and improved fuel economy to our customers, and our completely redesigned line of engines for industrial markets, including our new QUANTUM system quantum system n. A physical or theoretical system that cannot be correctly described without the use of quantum physics. , has been enthusiastically received. In addition, we will introduce many new and innovative products over the next three years." Fourth-quarter 1995 sales of $351 million to the heavy-duty truck market were 5 percent lower than the fourth quarter of 1994. The sales decrease was due primarily to lower engine shipments in Mexico, where economic conditions were difficult during the year. Sales of engines for the midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually truck market were $135 million or 9 percent lower than the fourth quarter of 1994, due to a drop in demand in Brazil's domestic market. Power Generation market sales were $306 million, an increase of $14 million over fourth quarter of 1994. In the bus and light commercial vehicles market, fourth-quarter 1995 sales of $185 million were $33 million higher than the fourth quarter of 1994. The increase was due to demand for engines for school buses and Chrysler 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 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 trucks. For the full year, engine sales for these trucks reached a record level of 64,000 units. Sales of $181 million to industrial markets were $26 million higher than the fourth quarter of 1994. Strong sales in international construction markets and to North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. agricultural customers accounted for the increase. Sales of Cummins' core technology companies were $149 million, 6 percent higher than fourth-quarter 1994 levels. During the quarter, a joint venture between Cummins and the China National Heavy Duty Truck Corporation, China's largest manufacturer of heavy-duty trucks, was formally dedicated at ceremonies in Beijing. The joint venture will manufacture and sell three families of Cummins diesel engines and will be the largest joint venture producing heavy-duty and high-horsepower diesel engines in China. Production is expected to yield at least 10,000 units annually by the year 2000. Cummins, headquartered in Columbus, Ind., is a leading worldwide designer and manufacturer of diesel engines and related products. These engines provide power for trucking, power generation, bus, industrial and marine markets worldwide. CONTACT: Cummins Engine Company, Inc., Columbus Ann C. Smith, 812/377-3524 |
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