Highlights  

Letter to
the
Shareholders

Power Generation Business

Filtration Business and Other

Engine Business

Financial Overview

Responsibility for Financial Statements

Report of Independent Public Accountants

Statement of Earnings

Statement of Financial Position

Statement of Cash Flows

Statement of Shareholders' Investment

Notes to Consolidated FinancialStatements

Five-Year Supplemental Data

Directors and Committees

Executives and Officers

Shareholder Information

Cummins Worldwide Locations

Home

 

 

 

Financial Highlights


$ Millions, except per share amounts
2000
1999

Net sales
$6,597
$6,639

Gross profit
1,259
1,418

Selling and administrative expenses
776
781

Research and engineering expenses
244
245

Net (income) expense from joint ventures and alliances
(9)
28

Other (income) expense, net
(1)
8

Earnings before interest and taxes: Before unusual charges
249
356

As reported
89
296

Net earnings
8
160

Basic earnings per share
.20
4.16

Diluted earnings per share
.20
4.13

Dividends per share
1.20
1.125

Business Unit Performance


 

Power Generation

Global supplier of diesel and natural gas-powered generator sets and generator set components from five kilowatt to multi-megawatt installations. North American market leader in auxiliary generator sets for recreational vehicles (RVs) and recreational marine applications.

Products Customers & Markets 2000 Highlights

• Power Systems Diesel and natural gas-powered generator sets Ð rental and installed; digital control systems; paralleling switchgear.

• Mobile Systems Onan gasoline, liquified propane, and diesel-fueled auxiliary generator sets from 3 kW to 12.5 kW and associated controls.

• Alternators and Engines Newage synchronous AC alternators and associated control systems. Generator drive engines and digital control systems.

• Public- and investor-owned utilities; telecommunications providers; self-generating manufacturers; any business or public facility with a need for self-generated or standby power.

• RV, specialty vehicle and marine pleasurecraft original equipment manufacturers (OEMs).

• Alternators and engines for industrial, marine, commercial, construction, telecommunica- tions, mining, generator drive markets and other standby or continuous power applications.

• For the second consecutive year, EBIT increased by almost 100 percent.

• Power Rent, offering temporary rental generator sets, expanded coverage across all of North America through our distributor network.

• Launched www.funroads.com for our RV customers.

• Participated in advanced research on ten kW fuel cells in conjunction with the US Department of Energy.

• Increased penetration into fast growing Internet and telecommunications markets where our digital control systems and ready standby power are critical.


Filtration and Other

Global leader of advanced integrated filtration systems for heavy-duty equipment, both on- and off-highway. Leading North American supplier of filtration and silencing systems for gas turbine, industrial, small engine and passenger car applications.

"Other" includes Holset turbochargers and company-owned distributorships.

 

Products Customers & Markets 2000 Highlights

• Heavy-Duty Systems Air intake filtration, emission and noise reduction, engine filtration and mobile hydraulic filtration systems. n Small Engine Systems Air intake filtration and exhaust systems.

• Other Systems Air intake and silencing systems for gas turbine applications, in-tank filtration for passenger cars and hydraulic filtration for industrial applications.

• All integrated systems sold under the Fleetguard and Nelson brand names.

• Turbochargers Holset variable geometry, variable wastegate, power turbine, high pressure ratio and multi-stage solutions.

 

• OEMs, distributors, dealers and end users of heavy-duty on- and off-highway diesel-powered equipment.

• OEMs of small engine systems for recreational, and lawn and garden equipment, both gasoline- and diesel-powered.

• OEMs of gas turbine generators, industrial machinery, passenger cars and industrial hydraulic equipment including distribution.

• Turbochargers for Cummins, Cummins' joint ventures and other diesel engine manufacturers.

• Cummins ownership of 16 distributorships links us closely to our end-use customers in strategic locations worldwide.

 

• Identified by an independent survey as number one in brand preference for oil, air, fuel and coolant filters in the United States.

• Remained solidly profitable as synergy among Cummins engines, filters, and exhaust systems took hold with OEMs.

• First to market with variable geometry turbocharger from Holset.

• Led aftertreatment research in support of future exhausts emissions requirements.

• Released new air-intake technology that provides for smaller and lighter, yet longer lasting, air filter elements thus reducing cost to the end user.

• Introduced multiple new filtration and exhaust products that have favorable environmental impacts by reducing used product disposal and providing cleaner exhaust emissions.

 


Engine Business

Leading global supplier of diesel and alternate fuel engines for heavy-duty trucks, medium-duty trucks, buses and RVs. Exclusive supplier of diesel engines for the Dodge Ram pickup truck. A leading global supplier of engines for the agriculture, construction, government, mining, rail and marine markets.

 

Products Customers & Markets 2000 Highlights

•Medium-duty engines ISB and ISC for light commercial automotive, truck, transit bus, RVs, and specialty vehicles. Automotive applications are available in diesel and alternate-fueled versions from 175 horsepower to 350 horsepower. B3.3, B3.9, B5.9, QSB, QSC for agriculture, construction and marine applications from 60 to 340 horsepower.

• Heavy-duty engines ISL, ISM, N14, ISX and Signature Series for trucking applications from 280 to 650 horsepower. QSM, M11, N14 and QSX15 for construction, mining, marine, and agriculture applications from 225 to 600 horsepower.

• High horsepower engines QSK19, V903, QST30, K38/50, QSK45, QSK60 and QSK78 for marine, rail, mining and government applications from 295 to 3,500 horsepower.

 

 

• Two broad classes of customers: OEMs who install Cummins engines in their vehicles and equipment; and end-use customers who use Cummins-powered equipment in their business endeavors.

• Signed a long term exclusive supply agreement with Volvo Trucks of North America for heavy-duty truck engines

• Set another record for engine shipments to Chrysler for the Dodge Ram pickup truck.

• Established the ISX engine as the fuel economy and performance leader in its class.

• Introduced the 78 liter engine which was jointly designed by Cummins and Komatsu. It is the world's largest diesel engine used for mobile off-highway equipment.

• An exclusivity agreement was signed between Cummins and Komatsu Mining Systems.

• Marine engine sales dollars grew by 17.5 percent over 1999.

• Record sales in commercial workboats (oilfield / tugs / fishing) with KV38/50 engines.