Print PageCUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
| Years ended December 31, | |||||||||
| 2007 | 2006 | 2005 | |||||||
| Millions (except per share amounts) |
|||||||||
| Net sales (includes related party sales of $1,816, $1,431 and $1,213) | $ | 13,048 | $ | 11,362 | $ | 9,918 | |||
| Cost of sales | 10,492 | 8,897 | 7,874 | ||||||
| Gross margin | 2,556 | 2,465 | 2,044 | ||||||
| Operating expenses and income Selling and administrative expenses |
1,296 | 1,153 | 1,003 | ||||||
| Research and engineering expenses | 329 | 321 | 278 | ||||||
| Investee equity, royalty and other income (Note 2) | 205 | 140 | 131 | ||||||
| Other operating income, net | 22 | — | — | ||||||
| Operating earnings | 1,158 | 1,131 | 894 | ||||||
| Interest income | 36 | 47 | 24 | ||||||
| Interest expense (Note 10) | 58 | 96 | 109 | ||||||
| Other income (expense), net | 33 | 1 | (11) | ||||||
| Earnings before income taxes and minority interests | 1,169 | 1,083 | 798 | ||||||
| Provision for income taxes (Note 4) | 381 | 324 | 216 | ||||||
| Minority interests in earnings of consolidated subsidiaries | 49 | 44 | 32 | ||||||
| Net earnings | $ | 739 | $ | 715 | $ | 550 | |||
| Earnings per common share (Note 17) Basic |
$ | 3.72 | $ | 3.76 | $ | 3.11 | |||
| Diluted | $ | 3.70 | $ | 3.55 | $ | 2.75 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements.