|
|
 |
| Millions, except
per share amounts |
2000 |
1999 |
1998 |
|
| Net
sales |
$6,597 |
$6,639 |
$6,266 |
| Cost
of goods sold |
5,338 |
5,221 |
4,925 |
| Special
charges |
- |
- |
92
|
|
| Gross
profit |
1,259 |
1,418 |
1,249 |
| Selling
and administrative expenses |
776 |
781 |
787 |
| Research
and engineering expenses |
244 |
245 |
255 |
| Net
(income) expense from joint ventures and alliances |
(9) |
28 |
30 |
| Interest
expense |
86 |
75 |
71 |
| Other
(income) expense, net |
(1) |
8 |
(13) |
| Restructuring,
asset impairment and other special charges |
160 |
60 |
125 |
|
| Earnings
(loss) before income taxes |
3 |
221 |
(6 ) |
| (Benefit)
provision for income taxes |
(19
) |
55 |
4 |
| Minority
interest |
14 |
6 |
11 |
|
| Net
earnings (loss) |
$
8 |
$ 160 |
$ (21) |
|
| Basic
earnings (loss) per share |
$
.20 |
$ 4.16 |
$ (.55) |
| Diluted
earnings (loss) per share |
.20 |
4.13 |
(.55) |
The accompanying notes are an integral part
of this statement
|
|
Cummins Engine Company,
Inc.
Consolidated Statement of Financial Position
|
| Millions, except per share amounts |
Dec. 31, 2000
|
Dec. 31,1999
|
|
| Assets |
|
|
| Current assets: |
|
|
| Cash and cash equivalents |
$ 62
|
$ 74
|
| Receivables, net of allowance of $8 and
$9 |
724
|
1,026
|
| Inventories |
770
|
787
|
| Other current assets |
274
|
293
|
|
|
| |
1,830
|
2,180
|
| Investments and other assets: |
|
|
| Investments in joint ventures and alliances |
201
|
131
|
| Other assets |
137
|
143
|
| |
338
|
274
|
|
|
| Property, plant and equipment: |
|
|
| Land and buildings |
590
|
577
|
| Machinery, equipment and fixtures |
2,417
|
2,375
|
| Construction in process |
189
|
168
|
| |
3,196
|
3,120
|
| Less accumulated depreciation |
1,598
|
1,490
|
| |
1,598
|
1,630
|
| Goodwill, net of amortization of $42 and
$28 |
354
|
364
|
| Other intangibles, deferred taxes and
deferred charges |
380
|
249
|
| Total assets |
$4,500
|
$4,697
|
|
|
| Liabilities and shareholders' investment
|
|
|
| Current liabilities: |
|
|
| Loans payable |
$ 156
|
$ 113
|
| Current maturities of long-term debt |
8
|
10
|
| Accounts payable |
388
|
411
|
| Accrued salaries and wages |
71
|
88
|
| Accrued product coverage and marketing
expenses |
280
|
246
|
| Income taxes payable |
11
|
40
|
| Other accrued expenses |
309
|
406
|
| |
1,223
|
1,314
|
|
|
| Long-term debt |
1,032
|
1,092
|
| Other liabilities |
837
|
788
|
| Minority interest |
72
|
74
|
|
|
| |
|
|
| Shareholders' investment: |
|
|
| Common stock, $2.50 par value, 48.6 and 48.3 shares
issued |
122
|
121
|
| Additional contributed capital |
1,137
|
1,129
|
| Retained earnings |
718
|
760
|
| Accumulated other comprehensive income |
(167)
|
(109)
|
| Common stock in treasury, at cost, 7.2 and 6.8 shares |
(290)
|
(274)
|
| Common stock held in trust for employee benefit plans,
3.1 and 3.4 shares |
(151)
|
(163)
|
| Unearned compensation |
(33)
|
(35)
|
| |
1,336
|
1,429
|
| Total liabilities and shareholders' investment |
$4,500
|
$4,697
|
The accompanying notes are an integral part
of this statement
Top Of
Page
|
|
Cummins Engine Company, Inc.
Consolidated Statement of Cash Flows
|
| Millions |
2000
|
1999
|
1998
|
| Cash flows from operating activities: |
|
|
|
| Net earnings (loss) |
$ 8
|
$160
|
($21)
|
| Adjustments to reconcile net earnings (loss)
to net cash from operating activities: |
|
|
|
| Depreciation and amortization |
240
|
233
|
199
|
| Restructuring and other special charges |
132
|
38
|
110
|
| Equity in (earnings) losses of joint ventures
and alliances |
9
|
35
|
38
|
| Receivables |
54
|
(200)
|
(10)
|
| Proceeds from sale of receivables |
219
|
-
|
-
|
| Inventories |
9
|
(60)
|
(26)
|
| Accounts payable and accrued expenses |
(241)
|
162
|
56
|
| Deferred income taxes |
2
|
(31)
|
(65)
|
| Other |
(44)
|
(30)
|
(10)
|
| Total adjustments |
380
|
147
|
292
|
| |
388
|
307
|
271
|
|
| Cash flows from investing activities: |
|
|
|
| Property, plant and equipment: |
|
|
|
| Additions |
(228)
|
(215)
|
(271)
|
| Disposals |
11
|
22
|
7
|
| Investments in joint ventures and alliances |
(53)
|
(36)
|
(22)
|
| Acquisitions and dispositions of business
activities |
(42)
|
57)
|
(468
|
| Other |
-
|
6
|
2
|
| |
(312)
|
(166)
|
(752)
|
|
| Net cash provided by (used in) operating
and investing activities |
76
|
141
|
(481
|
|
| Cash flows from financing activities: |
|
|
|
| Proceeds from borrowings |
1
|
28
|
711
|
| Payments on borrowings |
(65)
|
(90)
|
(161)
|
| Net borrowings (payments) under short-term
credit agreements |
49
|
49
|
(30)
|
| Repurchases of common stock |
(16)
|
(34)
|
(14)
|
| Dividend payments |
(50)
|
(47)
|
(46)
|
| Other |
(5)
|
(11)
|
11
|
| |
(86)
|
(105)
|
471
|
|
| Effect of exchange rate changes on cash |
(2)
|
-
|
(1)
|
| |
|
|
|
| Net change in cash and cash equivalents |
(12)
|
36
|
(11)
|
| Cash and cash equivalents at beginning of
year |
74
|
38
|
49
|
| Cash and cash equivalents at end of year |
$ 74
|
$ 38
|
|
| Cash payments during the year for: |
|
|
|
| Interest |
$ 88
|
$ 82
|
$ 56
|
| Income taxes |
73
|
56
|
73
|
The accompanying notes are an integral part of this statement
Top Of
Page
|
|
Cummins Engine Company,
Inc.
Consolidated Statement of Shareholders' Investment
|
| Millions, except per share amounts |
2000
|
|
1999
|
|
1998
|
|
|
| Common stock: |
|
|
|
|
|
|
| Balance at beginning of year |
$ 121
|
|
$ 120
|
|
$ 120
|
|
| Issued to trust for employee benefit plans |
-
|
|
-
|
|
-
|
|
| Other |
1
|
|
1
|
|
-
|
|
|
| Balance at end of year |
122
|
|
121
|
|
120
|
|
|
| Additional contributed capital: |
|
|
|
|
|
|
| Balance at beginning of year |
1,129
|
|
1,121
|
|
1,119
|
|
| Issued to trust for employee benefit plans |
-3
|
|
-
|
|
-
|
|
| Other |
11
|
|
8
|
|
2
|
|
|
| Balance at end of year |
1,137
|
|
1,129
|
|
1,121
|
|
|
| Retained earnings: |
|
|
|
|
|
|
| Balance at beginning of year |
760
|
|
648
|
|
715
|
|
| Net earnings (loss) |
8
|
$8
|
160
|
$160
|
(21)
|
$(21)
|
| Cash dividends |
(50)
|
|
(47)
|
|
(46)
|
|
| Other |
-
|
|
(1)
|
|
-
|
|
|
| Balance at end of year |
718
|
|
760
|
|
648
|
|
|
| Accumulated other comprehensive income: |
|
|
|
|
|
|
| Balance at beginning of year |
(109)
|
|
(167)
|
|
(70)
|
|
| Foreign currency translation adjustments |
|
(54)
|
4
|
|
|
-43
|
| Minimum pension liability adjustments |
|
(2)
|
55
|
|
|
-54
|
| Unrealized losses on securities |
|
(2)
|
|
(1)
|
|
-
|
|
| Other comprehensive income |
(58)
|
(58)
|
58
|
58
|
(97)
|
(97)
|
|
| Comprehensive income |
|
($50)
|
|
$218
|
|
$(118)
|
|
| Balance at end of year |
(167)
|
|
(109)
|
|
(167)
|
|
|
| Common stock in treasury: |
|
|
|
|
|
|
| Balance at beginning of year |
(274)
|
|
(240)
|
|
(245)
|
|
| Repurchased |
(16)
|
|
(34)
|
|
(14)
|
|
| Issued |
-
|
|
|
|
19
|
|
|
| Balance at end of year |
(290)
|
|
(274)
|
|
(240)
|
|
|
| Common stock held in trust for employee
benefit plans: |
|
|
|
|
|
|
| Balance at beginning of year |
(163)
|
|
(172)
|
|
(175)
|
|
| Issued |
-
|
|
-
|
|
|
|
| Shares allocated to benefit plans |
12
|
|
9
|
|
3
|
|
|
| Balance at end of year |
(151)
|
|
(163)
|
|
(172)
|
|
|
| Unearned compensation: |
|
|
|
|
|
|
| Balance at beginning of year |
(35)
|
|
(38)
|
|
(42)
|
|
| Shares allocated to participants |
2
|
|
3
|
|
4
|
|
|
| Balance at end of year |
(33)
|
|
(35)
|
|
(38)
|
|
|
| Shareholders' investment |
$1,336
|
|
$1,429
|
|
$1,272
|
|
| |
|
|
|
|
|
|
|
| Shares of stock |
|
|
|
|
|
|
| Common stock, $2.50 par value, 150.0 shares
authorized |
|
|
|
|
|
|
| Balance at beginning of year |
48.3
|
|
48.1
|
|
48.1
|
|
| Shares issued |
0.3
|
|
0.2
|
|
-
|
|
|
| Balance at end of year |
48.6
|
|
48.3
|
|
48.1
|
|
|
| Common stock in treasury |
|
|
|
|
|
|
| Balance at beginning of year |
6.8
|
|
6.1
|
|
6
|
|
| Shares repurchased |
0.4
|
|
0.7
|
|
0.4
|
|
| Shares issued |
-
|
|
|
|
(0.3)
|
|
|
| Balance at end of year |
7.2
|
|
6.8
|
|
6.1
|
|
|
| Common stock held in trust for employee
benefit plans |
|
|
|
|
|
|
| Balance at beginning of year |
3.4
|
|
3.6
|
|
3.7
|
|
| Shares issued |
-
|
|
-
|
|
|
|
| Shares allocated to benefit plans |
(0.3)
|
|
(0.2)
|
|
(0.1)
|
|
|
| Balance at end of year |
3.1
|
|
3.4
|
|
3.6
|
|
|
|
The accompanying notes are an integral part of this statement.
|
|
Top Of Page
|
|
|
|
|
