CMI 2011.06.30 Financial Results

CMI 2011.06.30 Financial Results - Second Quarter 2011...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Second Quarter 2011 Earnings Teleconference July 26, 2011 2 Participants Tim Solso Chairman and Chief Executive Officer Tom Linebarger President and Chief Operating Officer Mark Smith Executive Director – Investor Relations 3 Disclosure Regarding Forward-Looking Statements & non-GAAP Financial Measures This presentation contains certain forward-looking information. Any forward-looking statement involves risk and uncertainty. The Company’s future results may be affected by changes in general economic conditions and by the actions of customers and competitors. Actual outcomes may differ materially from what is expressed in any forward-looking statement. A more complete disclosure about forward-looking statements begins on page 3 of our 2010 Form 10-K, and it applies to this presentation. This presentation contains certain non-GAAP financial measures such as earnings before interest and taxes (EBIT) and net income and diluted earnings per share (EPS) attributable to Cummins Inc. Please refer to our website (www.cummins.com) for the reconciliation of those measures to GAAP financial measures. SAVE THE DATE CMI Analyst Day Tuesday, September 13, 2011 New York, NY Contact Information: Mark Smith Executive Director – Investor Relations (812) 377-3121 [email protected] www.cummins.com 4 $M Q2-11 Q1-11 Growth Q2-10 Growth Sales 4,641 3,860 +20% 3,208 +45% EBIT Excluding Gain on Sale of Business 1 707 532 +33% 401 +76% % of Sales 15.2% 13.8% 12.5% ROANA (LTM) 2 36% 33% 24% ROE (LTM) 2 28% 25% 17% 5 Cummins Inc. Selected Financial Data Year-over-year revenue increase reflects broad growth across all major regions and all business segments. Strengthening demand from on-highway, oil and gas, mining, and construction markets have contribute to increased US revenue of 56% and international revenue of 38%, compared to the prior year. 1 Q211 EBIT excludes $68 million pre-tax gain from the exhaust business transaction. 2 ROANA and ROE calculations exclude $68 million per-tax gain from the exhaust business transaction. $M Q2-11 Q1-11 Q2-10 Engine 49 42 52 On-highway 31 26 34 Off-highway 18 16 18 Power Generation 13 8 9 Distribution 46 38 30 Components 9 8 6 Total JV Income 117 96 97 6 Joint Venture Income JV earnings growth over the prior year was driven by strong oil and gas markets in North America and increased demand for power generation and mining products in China. $M Q2-11 Q1-11 Q2-10 Net Income Attributable to CMI Excluding Gain on Sale of Business 1 468 343 246 Diluted EPS 1 2.41 1.75 1.25 Gross Margin (% of Sales) 25.9% 24.8% 23.5% SAR (% of Sales) 13.4% 13.4% 14.0% 7 Cummins Inc. Selected Income Statement Data Compared to the prior year, earnings improved due to better operating leverage from stronger volumes, improved price realization, and lower warranty expense as a percent of sales. These benefits were partially offset by higher SAR expenses in the quarter....
View Full Document

This note was uploaded on 02/05/2012 for the course FINANCE 101 taught by Professor George during the Spring '11 term at University of Phoenix.

Page1 / 49

CMI 2011.06.30 Financial Results - Second Quarter 2011...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online