Cummins Reports Strong Sales and Profits in
Fourth Quarter 2009
-- 2010 Forecast of $11 Billion in Sales and 7 Percent EBIT in Line With 2009 Performance
February 02, 2010 07:33 AM Eastern Time
COLUMBUS, Ind.--(EON: Enhanced Online News)--Cummins Inc. (NYSE: CMI) today reported that the fourth
quarter 2009 was the most profitable fourth quarter in Company history, eclipsing the previous mark set in 2007.
Sales of $3.40 billion grew 3 percent from $3.29 billion in the fourth quarter 2008, while net income attributable to
Cummins Inc. increased to $270 million, or $1.36 a share, from $43 million, or 22 cents a share, a year ago.
Earnings Before Interest and Taxes (EBIT) was $383 million or 11.3 percent of sales, compared to $56 million, or
1.7 percent of sales in the fourth quarter 2008. The fourth quarter 2009 results include a pre-tax charge of $4 million
to cover the costs associated with restructuring, while the 2008 results included a $37 million pre-tax charge for
similar actions. Excluding these charges, fourth quarter 2009 EBIT was $387 million, or 11.4 percent of sales,
compared to $93 million, or 2.8 percent of sales in the same period in 2008.
For all of 2009, the Company reported revenues of $10.8 billion, down 25 percent from $14.3 billion in 2008 as a
result of the deep global recession that reduced demand in most markets throughout the year. Despite the downturn,
Cummins reported solid profit and significant positive cash flow in 2009 as the Company’s results improved on a
quarter-to-quarter basis throughout 2009.
EBIT before restructuring and other charges was $774 million, or 7.2 percent of sales – compared to EBIT before
restructuring and other charges of $1.26 billion, or 8.8 percent of sales in 2008. Net income attributable to Cummins
Inc. in 2009 declined by 43 percent to $428 million, or $2.16 a share, compared to $755 million, or $3.84 a share
in 2008. Excluding the restructuring and other charges, full year 2009 earnings per share was $2.49.
The Company repo